Here’s the update on XAUUSD today, December 14, 2023. The price of gold (XAU/USD) continues its strong recovery from around the 50-day Simple Moving Average (SMA) near $1,973, which marks a three-week low, and it has seen positive gains for the second consecutive day on Thursday. This momentum has pushed gold to a one-week high during the Asian session, although it stalled near the $2,040 supply zone.

Risk-on factors are the main hindrance for safe-haven metals, but the dovish shift from the Federal Reserve (Fed), along with geopolitical risks and concerns over an economic slowdown in China, has supported bullish sentiment among traders and strengthened the outlook for commodity appreciation.

On Wednesday, the Fed indicated that they have halted interest rate hikes, with the "dot plot" showing three rate cuts of 25 basis points in 2024. This led to a sharp decline in U.S. Treasury yields and continued selling pressure on the U.S. dollar on Thursday, which is likely to keep supporting gold prices that offer no yield.

Updates on monetary policy from the Swiss National Bank (SNB), Bank of England (BoE), and European Central Bank (ECB) may create market volatility and provide an additional boost ahead of U.S. Retail Sales data.

Market Movers Summary: Gold prices consolidate near a one-week high, remaining in a bullish trend.

The Federal Reserve decided to keep interest rates at their highest level in 22 years for the third consecutive meeting and conveyed a dovish stance in its policy statement. Policymakers see inflation approaching the annual target of 2% without a recession, with Fed interest rate projections peaking at 4.6% in 2024. Data on Wednesday indicated a slowdown in the average price increase paid by companies to suppliers, down to 0.9% in November.

Markets expect a 60% chance of a rate cut at the March meeting and a 90% chance of a cut in May. U.S. 10-year Treasury yields fell to their lowest level since August, while two-year yields hit their weakest since July.

Post-FOMC dollar selling has supported gold prices, although the risk-on environment has limited gains amid a central bank bonanza on Thursday. Policy decisions from the SNB, BoE, and ECB could trigger market volatility. Traders are awaiting November's U.S. Retail Sales data, with consensus projecting a 0.1% decline for the second consecutive month.


Disclaimer!

This is an overview of "XAUUSD Today: December 14, 2023 - Gold Ready to 'Soar' After Stabilizing." This analysis is based on fundamental and technical views from trusted sources and does not constitute advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research regarding other forex information to use as a reference in your trading.

Get the latest news and articles from GIC Indonesia on Google News daily to stay updated on the latest in forex and crypto. Also, trade on GICTrade using an ECN account to enjoy trading with low spreads starting from zero!