Here is the news update for XAUUSD today, February 6, 2024. Gold prices (XAU/USD) fluctuated within a narrow trading range during the Asian session on Tuesday, consolidating recent declines to the one-week low of around $2,015 reached the day before. Despite a slight decline in global risk sentiment providing support to the safe-haven metal, the bullish U.S. dollar (USD) and speculation that the Federal Reserve (Fed) may not cut interest rates as much as anticipated posed a hindrance.

Ongoing macro data from the U.S. indicates a still-strong economy, giving the Fed room to keep rates higher for a longer period. Hawkish comments from several Fed officials, including Chair Jerome Powell, have led investors to reduce expectations for more aggressive policy easing in 2024. This has been a key factor behind the sharp rise in U.S. Treasury yields, which is expected to support the dollar and limit gold price increases.

Gold Market: Consolidation and Fundamental Signals

  1. Gold prices are consolidating near a one-week low as geopolitical tensions in the Middle East and economic slowdown in China remain supportive factors.
  2. The Institute for Supply Management (ISM) reported growth in the U.S. services sector in January with an increase in new orders.
  3. The ISM Non-Manufacturing PMI rose to 53.4 last month, reaching the highest price level in 11 months.
  4. U.S. employment reports affirm good economic conditions, reducing the likelihood of Fed interest rate cuts in March.
  5. Hawkish comments from Fed officials suggest that rate cuts may be postponed until May or June, supporting rising U.S. Treasury yields.
  6. U.S. 2-year Treasury yields reached a one-month high, while 10-year yields remain above 4.0%.
  7. The U.S. dollar approaches a three-month high, which could limit gold appreciation, which does not provide yield.
  8. Chair Powell expressed patience in rate cut decisions during a CBS News 60 Minutes interview.
  9. Minneapolis Fed President Neel Kashkari argued that a higher neutral interest rate allows the central bank to patiently assess data.
  10. Chicago Fed President Austan Goolsbee stated inflation reports have been good for seven months, without commenting on the timing of the first rate cut.
  11. China's Central Huijin Investment plans to increase investment in Chinese stock ETFs to maintain market operation stability.


Warning!

This is the explanation regarding "XAUUSD Today: February 6, 2024 - Gold Prices Drop, Investors Suffer!". This analysis is based on views from fundamental and technical perspectives from reliable sources and does not constitute advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct your independent research on other forex information as a reference for your trading.

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