Gold Spikes As Hawkish Powell Sends Dollar, Bond Yields, & Stocks Lower

And it’s gone…

The biggest post-Powell winner was gold…

Stocks drifted higher ahead of The Fed, but Powell’s initial hawkish tone sent stocks lower – into the red for the day initially – but the machines quickly bid the dip… However, that did not hold…

Bloomberg’s Andrew Cinko points out a potentially bearish signal for the S&P 500: this week it has broken out of the “quintessential no man’s land” triangle pattern. Today’s Fed decision gave more clarity on this pattern. This breakout could be a false alarm or could be the start of a more lasting downturn.

“Until/unless 2,745 can be regained on at least consecutive hourly closes, preferably a daily close, trends remain bearish” and it’s right to expect further selling post the Fed meeting, Newton Advisors wrote today in a note.

Facebook bounced on the day but it was purely technical ramp to run stops at 200-day moving average…

The initial reaction from the FOMC statement was to sell the dollar and bonds but ince the press conference started, bonds were bid and the dollar sank further…

Treasuries roundtripped dramatically after Powell started speaking… Despite The Fed hiking the rates trajectory over the next two years, 2Y yields dropped notably (steepening the 2s30s curve)…

With 10Y yields ending lower on the day…

The dollar’s Powell-plunge took it back to its lowest since Feb 26th… and he was hawkish!

All commodities were higher on the day with crude soaring above $65 (after bullish inventories data) and a weaker dollar…

But, as The Dollar sank, gold surge back above $1335 (above its 50DMA)…

WTI jumped to 6-week highs…

Cryptos were mixed on the day with no big news catalyst, but Bitcoin remains up 5% from Friday’s close…