XAUUSD Today: February 23, 2024 - Gold Prices Held Back by Rate Talk

Here’s the update on XAU/USD news for today, February 23, 2024. Gold prices (XAU/USD) saw a slight increase during the Asian session on Friday, although there has been no follow-up and it remains below the previous two-week high. The minutes from the January FOMC meeting and recent comments from Federal Reserve officials indicate a cautious stance regarding interest rate cuts. Despite rising US Treasury yields and a risk-on rally in global equity markets, gold struggles to gain positive momentum.

 

Meanwhile, the potential negative impact as a safe haven is limited due to rising geopolitical tensions in the Middle East. The US Dollar, despite the Fed's hawkish stance, continues to struggle to gain traction. XAU/USD may experience moderate gains after three weeks, but caution is warranted given the fundamental factors mentioned above before making aggressive bullish decisions.

 

 

- Gold prices are supported by geopolitical tensions in the Middle East, including Israeli attacks in Gaza and Houthi attacks in the Red Sea, making it a sought-after safe haven for investors.

- The US Dollar struggles to capitalize on previous rebounds, providing additional support to XAU/USD, although the Fed's hawkish stance may limit gains.

- The FOMC minutes indicate uncertainty about the duration of current interest rates to control inflation, affecting market decisions.

- Fed Vice Chair Philip Jefferson expressed the possibility of rate cuts but seeks confirmation from economic indicators before taking action.

- Philadelphia Fed President Patrick Harker emphasized caution in cutting rates, wanting timely reductions to avoid inflation risks.

- Fed Governor Lisa Cook believes it is not yet time to cut rates due to variable inflation.

- Fed Governor Christopher Waller suggested delaying rate cuts to see if inflation is temporary.

- Markets are pricing in the possibility of Fed rate cuts, with a 30% chance in May and 66% in June, according to the CME Group's FedWatch Tool.

- US unemployment data shows a decline, indicating renewed strength in the labor market.

- US 10-year Treasury yields remain stable near recent highs, limiting gold amid risk-on sentiment.

- Positive Eurozone PMI data boosts investor sentiment, potentially limiting XAU/USD.

 

 

The analysis titled “XAU/USD Today: February 23, 2024 - Gold Prices Held Back by Interest Rate Talk” is based on fundamental and technical views from trusted sources and is not intended as advice or an invitation. 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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