Here is the update for XAUUSD today, February 29, 2024. Gold prices (XAU/USD) have seen a positive increase today, marking the second consecutive day of gains, although they remain under the selling zone of $2,040-2,042 ahead of the European session.

Investors are cautious ahead of important US inflation data, which, combined with a slight weakening of the US Dollar (USD), supports gold as a safe haven. However, this rise is limited as more people accept that the Federal Reserve (Fed) may keep interest rates high for an extended period.

Traders appear reluctant to take aggressive positions, preferring to wait for further guidance on Fed interest rate policy. The focus remains on the upcoming release of the US Personal Consumption Expenditures (PCE) Index, which will influence USD price dynamics and determine gold price direction in the short term. Meanwhile, caution is needed given the Fed's more hawkish expectations before deciding to extend the recovery of gold prices from this year's lows.

Market Summary Today: Gold prices are struggling to attract buyers due to the hawkish outlook from the Federal Reserve (Fed).

Gold is having difficulty drawing in buyers due to the hawkish stance of the Federal Reserve (Fed). Concerns about US inflation have eased interest in riskier assets and supported gold prices as a safe haven.

Fed officials emphasize the need for further efforts to address inflation, while the estimated US GDP growth for the fourth quarter is slightly lower than initial reports. Although the US economy appears strong, the Fed's hawkish view on interest rates could limit the rise of non-yielding gold. Economic data on Thursday and Fed speeches will also be market movers.

Warning!

This concludes the news on "XAUUSD Today: February 29, 2024 - Prices Awaiting US Inflation News." 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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