Here is the update on XAUUSD news today, January 4, 2023. Gold prices (XAU/USD) fell this week as U.S. Treasury bonds rose and the U.S. dollar strengthened. However, U.S. bond yields are starting to lose their appeal after the FOMC meeting minutes reflected a consensus that inflation is under control. This, along with a weakening equity market, made gold attractive to buyers near $2,030, and it rose today, Thursday, January 4, 2024.

The minutes did not provide any hints about when the Fed will lower interest rates, while the President of the Richmond Fed stated that rate hikes are still under consideration. This keeps the U.S. dollar near a two-week high and limits gold price increases. Traders are seeking further clarity regarding Fed policy, focusing on the U.S. Nonfarm Payrolls (NFP) report on Friday.

Meanwhile, on the U.S. economic calendar for Thursday, the ADP report on private sector employment and Initial Jobless Claims will be the main focus during the early North American session.

However, uncertainty about the possibility of an earlier rate cut by the Fed may continue to hinder traders from taking aggressive bullish positions on non-yielding gold prices. Therefore, caution is needed before confirming that the one-week downward trend has ended and is ready to face potential further intraday appreciation.

Daily Market Movers Summary: Gold prices struggle to capitalize on small intraday gains.

  1. Gold prices experienced a rebound after reaching a one-week low, driven by speculation about a Federal Reserve rate cut in March and geopolitical tensions.
  2. The minutes from the December FOMC meeting indicated that the addition of the word "any" in the statement is a signal that rates are nearing their peak.
  3. Policymakers are attentive to inflation while realizing that rates may be maintained longer than currently expected.
  4. The minutes did not provide direct hints about the timing of the start of rate cuts in 2024.
  5. Richmond Fed President Thomas Barkin believes the economy is headed for a soft landing while stating that rate hikes are still possible.
  6. U.S. 10-year bond yields stabilized below 4.0%, impacting the U.S. dollar and limiting non-yielding gold.
  7. The Institute for Supply Management (ISM) reported a slowdown in the U.S. manufacturing sector's decline with a slight increase in production.
  8. The ISM Manufacturing PMI rose to 47.4 from 46.7 the previous month but remained in contraction territory for 14 consecutive months.
  9. The JOLTS survey showed a decline in job listings to 8.79 million in November, the lowest since March 2021.
  10. Traders are anticipating the U.S. ADP report, which is expected to show an addition of 115,000 jobs in December.
  11. Market focus remains on the NFP report on Friday for details of the official monthly employment data.


Warning!

That is the explanation regarding "XAUUSD Today: January 4, 2024 - After Uncertainty, Gold Shines Again!" This analysis is based on insights 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 as a reference for your trading.

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