Here is the update on XAUUSD news for today, January 25, 2024. The price of gold (XAU/USD) remains positive ahead of the European session today, seemingly halting its previous decline in the supply zone of $2,040-2,042. The US dollar (USD) is moving sideways below its highest level since December 13, as uncertainty about when the Federal Reserve (Fed) will cut interest rates and ongoing geopolitical tensions continue to support gold as a safe-haven asset.
 
Investors are reducing expectations for more aggressive Fed policy easing in 2024, supporting US Treasury yields. Market participants are awaiting the US GDP data for the fourth quarter, hoping for a boost for the USD. Inflation data to be released on Friday will influence market expectations for future Fed policy and the direction of XAU/USD. It would be wise to wait for strong follow-up buying action before confirming that the price of gold has reached a short-term bottom.
 
Daily Market Movement Overview: The price of gold is struggling to gain significant buying interest due to delayed bets on Fed rate cuts.
  1. The price of gold struggles to gain significant buying interest due to delayed Fed rate cut bets.
  2. A strong US dollar, along with geopolitical tensions in the Middle East, supports gold prices as a safe haven.
  3. Iran-backed Houthi rebels attacked two US commercial vessels in the Gulf of Aden, responding to earlier US military airstrikes.
  4. An initial increase in the US Composite PMI reflects a strong economy at the start of 2024.
  5. The US Manufacturing PMI rose to 50.3, and the services sector increased to 52.9, indicating ongoing economic strength.
  6. This data reduces expectations for more aggressive monetary policy easing by the Federal Reserve in 2024.
  7. US 10-year Treasury yields approach their monthly peak, supporting the dollar and limiting gold's rise, which does not offer yields.
  8. The preliminary fourth-quarter US GDP report is expected to show an economic slowdown.
  9. The release of Durable Goods Orders and Weekly Initial Jobless Claims in the US may affect the dollar and XAU/USD.
  10. Results from the European Central Bank meeting may create volatility and short-term trading opportunities.
  11. Market focus remains on the US Personal Consumption Expenditures Price Index data as the Fed's preferred inflation measure on Friday.
 
Warning!
 
That’s the explanation regarding “XAUUSD Today: January 25, 2024 - USD Weakens, Gold Sees Modest Gains.” This analysis is based on fundamental and technical insights from reliable sources and is not intended as 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 that you can check on Google News every day to stay updated on the forex and crypto world. Trade with GICTrade using an ECN account to enjoy trading with low spreads starting from zero!