Here is the XAUUSD news update for today, February 19, 2024. Gold prices continue to rise, reaching $2,020 per troy ounce at the start of the European session on Monday. This increase is supported by investor caution due to speculation about Federal Reserve interest rate policies.

Statements from San Francisco Fed President Mary C. Daly at the Economic Policy Conference indicated a depreciation of the US dollar, driving gold prices higher. Daly suggested that three rate cuts make sense for 2024, emphasizing the importance of current economic interventions. Former Fed official James Bullard's recommendation to consider a rate cut at the March meeting to prevent economic activity from slowing also influenced market sentiment.

However, market sentiment suggests that an interest rate adjustment at the upcoming Federal Reserve meetings in March and May is unlikely. According to the CME FedWatch Tool, there is about a 52% chance of a 25 basis point (bps) rate cut in June. On Friday, the US dollar (USD) was unable to maintain its initial gains, which were triggered by better-than-expected Producer Price Index (PPI) data, leading to an increase in gold prices.

The US Producer Price Index (PPI) showed a year-on-year growth of 0.9%, exceeding expectations of 0.6%, with a monthly increase of 0.3% compared to a previous decline of 0.1%. However, even though the Michigan Consumer Sentiment Index rose to 79.6 from 79.0, it remained below the expected 80.0.

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The analysis titled “XAUUSD Today: February 19, 2024 - Gold Prices Hit World Record of $2,020” is based on views from fundamental and technical perspectives from reliable sources and is not intended as advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research regarding other forex information as a reference for your trading.

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