Here is the update on XAUUSD news today, February 21, 2024. Gold prices (XAU/USD) continue to attract positive attention for five consecutive days, reaching a one-week high around $2,032 on Wednesday. The US Dollar (USD) weakened ahead of the FOMC meeting minutes, providing support for gold prices as a safe haven. However, further increases may be limited as traders await signals regarding the Federal Reserve's interest rate policy. It is advisable to wait for follow-up buying action above the 50-day SMA before considering further recovery from last week's two-month low of $1,984.
 
Daily Market Movers Summary: Gold prices experienced an increase near the one-week peak and the 50-day SMA during the Asian session on Wednesday, thanks to a slight decline in USD value and waning risk sentiment.
 
  1. A combination of factors supported pushing gold prices near the one-week peak and surpassing the 50-day SMA during the Asian session on Wednesday. The market anticipates four rate cuts of 25 basis points by the Federal Reserve in 2024, starting in June, which weakens the US Dollar and supports the metal.
  2. Investors are concerned about the risk of escalating tensions in the Middle East following a series of attacks in the Red Sea by Houthi rebels in Yemen.
  3. Last week, US officials stated that Russia is developing anti-satellite nuclear weapons in space, contradicting President Vladimir Putin's statement denying the deployment of nuclear weapons in space.
  4. A White House official announced plans for significant sanctions against Russia on Friday to hold President Vladimir Putin accountable for the two-year war in Ukraine.
  5. The People's Bank of China lowered the five-year loan interest rate by 25 bps, the largest cut since 2019, to support real estate developers and economic growth.
  6. The yield on 10-year US government bonds remains above 4.0%, with traders awaiting the FOMC meeting minutes for further clues about rate cuts.
  7. Hawkish signals from policymakers raise concerns that the Fed will maintain high interest rates for a longer period, potentially strengthening the dollar and putting pressure on XAU/USD.
 
Warning!
 
The analysis "XAUUSD Today: February 21, 2024 - Gold Soars to New One-Week Peak!" is based on perspectives from fundamental and technical 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 as a reference for your trading.
 
Get the latest news and articles from GIC Indonesia that you can check on Google News every day to know the latest updates in the forex and crypto world. Also, trade at GICTrade using an ECN account to enjoy trading with low spreads starting from zero!