Here is the XAUUSD news update for today, January 23, 2024. Gold prices (XAU/USD) rose on Tuesday, approaching the previous high of $2,030. Conflicts in the Middle East and concerns about China's economic recovery support gold as a safe-haven asset. The moderate U.S. dollar (USD), influenced by the weakening of U.S. Treasury bond yields, also supports gold.
 
However, gold's strength is difficult to achieve due to reduced expectations for interest rate cuts by the Federal Reserve (Fed). U.S. economic data shows favorable conditions, providing more room for the Fed to maintain higher interest rates. Hawkish comments from Fed officials stating that interest rate cuts are still too early have led investors to lower their expectations for easing policies in 2024.
 
This, in turn, will strengthen the Greenback and limit the rise in gold prices, which do not yield returns. Traders may be reluctant to take aggressive positions in gold prices ahead of the global PMI release early this week on Wednesday and key risk events such as the European Central Bank (ECB) meeting on Thursday. Investors will also monitor the release of the U.S. Q4 GDP and the U.S. Core PCE Price Index on Thursday and Friday.
 
This significant U.S. inflation data will play an important role in shaping market expectations for the Fed's future policies. Along with the latest developments surrounding the Israel-Hamas conflict, this could provide significant impetus for gold prices. Nevertheless, the fundamental factors mentioned suggest that XAU/USD has a stronger tendency toward decline. Therefore, any increase is likely to be seen as a selling opportunity and could be at risk of failing in a relatively short time.
 
Daily Market Driver Summary: Gold prices are supported by geopolitical tensions, reducing expectations for Fed interest rate cuts to limit gains.
 
  1. Tensions in the Middle East and economic uncertainty in China support gold prices as a safe haven on Tuesday.
  2. The U.S. and the UK conducted a series of joint airstrikes in Yemen in response to threats against commercial vessels in the Red Sea.
  3. Pakistan and Iran have chosen the path of diplomacy, while the Israel-Hamas conflict could have significant impacts on the global economy.
  4. Investors have reduced expectations for Fed policy easing due to signs of a resilient economy.
  5. The likelihood of a rate cut in March has decreased to 40%, down from 80% last week, reflecting a more positive perception of the economy.
  6. U.S. 10-year bond yields limit gold's rise by strengthening the U.S. dollar.
  7. The Bank of Japan maintained its monetary policy at the January meeting.
  8. Attention shifts to the European Central Bank meeting, global PMI, U.S. Q4 GDP, and U.S. Core PCE Price Index.

Warning!
 
That is the explanation regarding "XAUUSD Today: January 23, 2024 - Gold Maintains Intraday Gains." This analysis is based on views from fundamental and technical perspectives from trusted sources and is not intended as advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research on other forex information to use as a reference in your trading.
 
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