Here’s the update on XAUUSD today, January 22, 2024. Gold prices (XAU/USD) weakened at the start of the week after hitting a one-month low. Positive U.S. economic data and hawkish comments from Federal Reserve officials lowered market expectations for interest rate cuts, prompting investors to move away from gold, which does not provide yield.

However, geopolitical tensions in the Middle East and concerns about slowing economic growth in China may support the safe-haven appeal of XAU/USD. A shift of funds to safer assets has also pressured U.S. Treasury yields, keeping the U.S. dollar defensive and helping to limit gold's decline. Bearish traders should be cautious given the complex market conditions.

Market Movers Daily Summary: Gold prices dropped as investors cut bets on a Fed rate cut in March.

  1. Diminished speculation about an earlier rate cut by the Federal Reserve, combined with generally positive risk sentiment, triggered a sell-off in the gold market at the start of the week.
  2. Last week’s macro data from the U.S. exceeded expectations, and recent comments from Fed officials forced investors to lower their forecasts for an earlier rate cut.
  3. The preliminary survey from the University of Michigan showed the U.S. Consumer Sentiment Index rising from 69.7 in December to 78.8 this month, reaching its highest level since July 2021.
  4. According to the CME Group's Fed Watch Tool, the odds of a Fed rate cut at the March meeting are now below 50%, down from over 70% last week.
  5. Chicago Fed President Austan Goolsbee stated that the central bank needs more inflation data before making any decisions regarding a rate cut.
  6. San Francisco Fed President Mary Daly said there is still much work to be done regarding inflation and that it is too early to discuss a rate cut.
  7. The U.S. launched an attack on Houthi anti-ship missiles on Sunday, marking the seventh attack since the rebel group began targeting commercial vessels in the Red Sea.
  8. Since October 17, there have been at least 140 attacks against U.S. bases, with seven in the last week, including a massive attack on the Ain al-Assad base in Iraq.
  9. Iran vowed to retaliate against the attack that killed five senior military officials in Damascus, which is suspected to have been carried out by Israel.
  10. Israeli forces and Hamas fighters clashed in several locations on Sunday, with Israeli aircraft conducting extensive bombings in Khan Younis, southern Gaza.
  11. Israeli Prime Minister Benjamin Netanyahu rejected a two-state solution to the conflict, stating that Israel must maintain security control over the entire West Bank.
  12. On Monday, the People's Bank of China (PBoC) decided to maintain the one-year and five-year Loan Prime Rates (LPR) at 3.45% and 4.20%, respectively.

Warning!

This explanation regarding "XAUUSD Today: January 22, 2024 - Rate Hike Delayed, Gold Prices Stalled" is based on fundamental and technical insights from reliable sources and is not intended as advice or a recommendation. Always remember that this content aims to enrich the reader's information. Conduct your independent research regarding other forex information for reference in your trading.

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