Forex Market Analysis: Surge in Gold Prices and Key Currency Pair Movements

Scalping: Scalping is a trading style that focuses on profiting from tiny price movements. In this strategy, traders look for small profits in a very short time frame, and a 3 PIP move can be a target. This type of trading requires precise execution and quick decision-making.
Day Trading: Day trading is another strategy that involves monitoring short-term price movements, where traders seek to profit from minor fluctuations. Traders may use the 3 PIP target to enter or exit positions based on short-term trends.

Gold's Unprecedented Rally

The gold market has seen an extraordinary rally, with prices reaching historic highs. The ongoing US government shutdown and the market's anticipation of Federal Reserve rate cuts have fueled a surge in demand for gold as a safe haven. Notably, gold prices are not just climbing but are poised to test the $4,000 mark, a level previously unseen. This bullish trend is supported by a consistent increase in safe-haven demand amid global economic uncertainty, further intensified by the Fed's potential policy shifts.

Impact of Political Events on Major Currencies

The forex market has witnessed significant volatility due to recent unexpected political events. The resignation of France's Prime Minister has led to a sharp decline in EUR/USD, as investors worry about political stability in the Eurozone. Similarly, the election of Sanae Takaichi as the leader of Japan's Liberal Democratic Party, who is expected to become the country's first female prime minister, has put pressure on the Japanese Yen, influencing USD/JPY movements. These events highlight the sensitivity of currency markets to political changes and their potential to cause sudden shifts in investor sentiment.

GBP and AUD: Analysis Amid Global Sentiment and Domestic Factors

The British Pound has experienced fluctuations against both the Australian Dollar and the US Dollar. Positive global sentiment has strengthened riskier currencies like the Australian Dollar, causing GBP/AUD to dip. Conversely, political turmoil in the US, including the government shutdown, has adversely affected the USD, leading to a volatile GBP/USD rate. These movements underscore the impact of both global sentiment and domestic political and economic events on currency pairs.