Here’s the XAUUSD news update for today, January 2, 2024. Gold prices (XAU/USD) have seen a positive increase at the beginning of the new year, recovering much of the decline over the past two trading days. Currently, gold is trading around $2,075, up more than 0.50% today, although still below the multi-week high reached last Thursday.
 
Increased confidence that the Federal Reserve (Fed) will soon cut interest rates in March, along with geopolitical risks and concerns about the economic recovery in China, are driving gold prices.
 
However, the recovery of the US Dollar from last week's five-month low, supported by rising US Treasury yields, could limit gold's gains. Market participants may wait for the FOMC minutes on Wednesday before making decisions, while keeping an eye on a busy US economic calendar this week, which could significantly impact gold prices.
 
Summary of XAUUSD Market Movements for January 2, 2024:
 
  1. Gold prices rose 13% last year, the best performance since 2020, with potential for continued positive momentum.
  2. Fed's expectations of easing policies in March support gold prices.
  3. More than an 85% chance that the Fed will cut interest rates by 150 basis points in March.
  4. Geopolitical risks from Ukraine, the Middle East, and concerns about China’s economy support gold.
  5. The US has launched a counterattack against Houthi groups in the Red Sea.
  6. China's PMI shows a decline in manufacturing activity with slight recovery at the end of 2023.
  7. Surveys indicate an increase in factory activity in China, but business confidence for 2024 remains low.
  8. The US Dollar's recovery from its lows may limit XAU/USD gains.
  9. US Treasury yields have recovered, supporting the dollar.
  10. Traders are awaiting the FOMC minutes and US data, including the NFP report.
  11. Economic data this week includes ISM Manufacturing PMI, JOLTS Job Openings, and the ADP report.
 
From a technical perspective, the all-time high closing around $2,077-2,078 on Wednesday serves as a barrier toward the $2,088 zone or multi-week highs. Continued buying could push gold prices above $2,100, with potential testing of the record high around $2,144 from early December.
 
Conversely, the $2,060-2,058 region protects the downside, approaching the horizontal zone at $2,048 and the $2,040 area. Failing to maintain support levels could accelerate declines toward $2,020 and the 50-day SMA around $2,006, as well as the psychological level of $2,000.
 
Warning!
 
This concludes the discussion on "XAUUSD Today: January 2, 2024 - Gold Prices Surge, USD Rises!" This analysis is based on fundamental and technical perspectives from trusted sources and does not constitute advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research regarding other forex information as a reference for your trading.
 
Get the latest news and articles from GIC Indonesia on Google News daily to stay updated on the forex and crypto world. Trade on GICTrade using an ECN account to enjoy trading with low spreads starting from zero!