Here is the XAUUSD news update for today, February 1, 2024. Gold prices (XAU/USD) have seen buying for four consecutive days on Thursday, although they have not yet reached the two-week high of around $2,056. The US Dollar (USD) is nearing its highest level since December 13, supported by a less dovish stance from the Federal Reserve, which is a major obstacle for gold prices in USD. Positive sentiment in US equity markets is also limiting gold's rise, while geopolitical uncertainty in the Middle East and concerns over China's economic slowdown continue to support the safe-haven XAU/USD.

Traders are anticipating Eurozone inflation data and US ISM Manufacturing PMI, along with the Bank of England's monetary policy decision on Thursday. Factors such as US Treasury yields, USD price dynamics, and risk sentiment may create short-term trading opportunities in the gold market.

Daily Market Movers Summary: Gold prices are struggling to capitalize on intraday gains amid a strengthening US Dollar.

  1. The Federal Reserve signaled on Wednesday that they are moving closer to rate cuts and reduced US Treasury yields, which is seen as a key factor supporting gold prices.
  2. The Fed's decision to maintain the target interest rate in the 5.25%-5.5% range at Wednesday's two-day meeting indicates that the policy rate may be at its peak.
  3. After the meeting, Fed Chair Jerome Powell expressed the possibility of rate cuts this year, though not aligning with expectations for a cut in March.
  4. The market currently shows only a 35% chance of a US rate cut in March, down from over 60% before the Fed's decision and nearly 90% last month.
  5. The US Dollar remains strong, supported by less dovish prospects, limiting gold's gains that do not yield returns.
  6. Investors are concerned that conflicts in the Middle East could escalate into a broader war, while China's economic growth is slowing, providing support for gold as a safe haven.
  7. The European Union plans to launch a naval mission in the Red Sea in three weeks to protect cargo ships from Houthi attacks, which could impact trade and prices.
  8. Private sector surveys indicate stable growth in China's manufacturing sector for three consecutive months in January.
  9. Traders are looking forward to early Eurozone consumer inflation data, the Bank of England's policy decisions, and US ISM Manufacturing PMI ahead of Friday's NFP data.

Disclaimer!

This analysis regarding "XAUUSD Today: January 26, 2024 - Gold Prices Struggling to Find Interest" is based on fundamental and technical insights from trusted sources and is not intended as advice or solicitation. Always remember that this content aims to enrich the information available to readers. Always conduct independent research regarding other forex information as a reference for your trading.

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