Here is the update on XAUUSD news today, December 13, 2023. Gold prices (XAU/USD) continue to face selling pressure for four consecutive days until Tuesday, reaching a three-week low around $1,974 ahead of the European session. US data showed an unexpected rise in consumer prices in November, reinforced by better-than-expected job reports on Friday, weakening hopes for an early easing of policy by the Federal Reserve (Fed). This is a major factor driving investment out of gold, which does not yield returns, despite China planning to implement more stimulus.

Despite concerns about economic growth in China and geopolitical risks, gold remains considered a safe-haven. Investors are awaiting the outcome of the FOMC monetary policy meeting and focusing on the policy statement and economic projections, especially the "dot plot." The possibility of Fed rate cuts in the coming years could pressure the USD and drive gold prices higher. The FOMC decision is expected to increase volatility in financial markets and potentially affect XAU/USD.

Daily Market Movers Summary: Gold prices continue to weaken as they await the Fed's policy decision.

  1. Uncertainty regarding the Federal Reserve's short-term policy makes traders reluctant to predict gold price movements, limiting price fluctuations.
  2. Recent data from the United States showed an unexpected rise in consumer prices in November, prompting traders to reduce speculation on rate cuts in March.
  3. The core Consumer Price Index (CPI) in the US rose slightly by 0.1% in November, while the annual rate fell to 3.1% from 3.2% previously.
  4. The annual CPI Core inflation remained stable at 4.0%, in line with expectations, with a monthly increase of 0.1%.
  5. November's figures remain above the Fed's 2% target, even though US job reports are strong, indicating economic strength.
  6. Market focus is on the results of the two-day FOMC meeting, announced during the American session on Wednesday.
  7. Investors are seeking clues on when the Fed will cut rates in 2024, affecting demand for the US Dollar and gold.
  8. Expectations for Chinese stimulus address geopolitical risks in the Middle East and support risk-on sentiment.
  9. China will adjust policies to support economic recovery in 2024, according to state media.
  10. Senior Communist Party officials suggested fiscal deficits and optimizing the fiscal spending structure for 2024.
  11. Houthi rebels in Yemen enforce rules through the Red Sea amid Israel's embargo, reminding travel to "Occupied Palestinian Territory."
  12. The US has imposed new sanctions on over 250 individuals and entities related to Russia's sanctions evasion following the invasion of Ukraine.
  13. Despite US sanctions, investor interest in risk assets remains high, while precious metals are considered safe-haven.


Warning!

That is the explanation regarding "XAUUSD Today: December 13, 2023 - Gold Prices Plunge!" This analysis is based on views from fundamental and technical perspectives from trusted sources and is not intended as advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research first regarding other forex information to be used as a reference in your trading.

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