Here is the update for XAUUSD today, February 28, 2024. Gold prices (XAU/USD) remain stagnant around the 50-day Simple Moving Average (SMA) on Wednesday as traders await new catalysts before taking their next steps. The main focus is on the upcoming US Personal Consumption Expenditures (PCE) Index data on Thursday, which could provide clues about Federal Reserve (Fed) interest rate policy and influence the price of non-yielding gold.

Some buying action in the US Dollar has emerged due to hopes of a hawkish Federal Reserve (Fed) policy, acting as a major hurdle for gold prices. Additionally, the ongoing risk-on sentiment is also limiting the appeal of precious metals as a safe haven. However, the decline in US Treasury yields may curb US Dollar buyers' willingness to take aggressive positions, supporting XAU/USD.

Traders are anticipating the preliminary Q4 US GDP data and influential FOMC member speeches, which will impact the Dollar and gold prices. The changing risk sentiment could create short-term trading opportunities, but the complexity of fundamental factors suggests caution before taking aggressive positions.

Daily Market Movers Summary: XAUUSD Today February 28, 2024

  1. Gold prices continue to consolidate without significant impetus, despite various influencing factors trying to sway them for nearly a week.
  2. The narrative surrounding Federal Reserve interest rates, which are expected to remain high, supports the US Dollar while undermining the value of non-yielding gold.
  3. The recent drop in US bond yields, along with the government shutdown and disappointing durable goods orders data, is expected to limit the USD's strength.
  4. US President Joe Biden emphasizes the urgency of finding a solution to prevent a government shutdown on March 1, while the legislative deadlock still shows no signs of resolution.
  5. Durable goods orders in the US fell 6.1% in January, marking the lowest figure in nearly four years, according to the US Census Bureau.
  6. The Conference Board Consumer Confidence Index declined after three consecutive months of increases, reaching 106.7 for February, although inflation expectations have decreased.
  7. The Fed Richmond Manufacturing Index improved to -5 in February, compared to -15 the previous month, but has remained negative for the last four months.
  8. Traders are looking forward to the release of Q4 US GDP data, expected to meet preliminary estimates, indicating annual economic growth of 3.3%.
  9. FOMC member speeches and GDP data are anticipated to play a crucial role in shaping USD demand and potential trading opportunities in the XAU/USD market.
  10. The focus remains on the US Personal Consumption Expenditures Index on Thursday, which is considered a key determinant for the direction of Federal Reserve interest rate policy.


Warning!

This concludes the news on "XAUUSD Today: February 28, 2024 - The 50-Day SMA Becomes a Defense Barrier!" This analysis is based on insights from fundamental and technical perspectives from trusted sources and is not intended as advice or an invitation to trade. Always remember that this content aims to enrich the reader's information. Conduct your own independent research regarding other forex information to use as a reference in your trading.

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