Here is the XAUUSD news update for today, January 8, 2024. Gold prices (XAU/USD) have recovered about $40 from a two-week low following better-than-expected monthly employment data on Friday. However, momentum is waning near $2,064 due to uncertainty regarding the Federal Reserve's (Fed) interest rate cuts, which is hindering traders from making aggressive bets on non-yielding gold.

Investors are reducing expectations for more aggressive Fed policy easing, supporting rising yields on U.S. Treasury bonds, affecting the U.S. Dollar, and putting pressure on gold prices at the start of the new week. Although lower risks may limit declines, sentiment remains influenced by hawkish statements from FOMC members.

Market sentiment is still vulnerable due to concerns about the slow economic recovery in China and increasing geopolitical tensions in the Middle East. Despite a weakening equity market, which would typically support gold prices as a safe haven, traders are waiting for the release of U.S. consumer inflation figures on Thursday before confirming the direction of the precious metal.

On Monday, the USD will rely on remarks from Atlanta Fed President Raphael Bostic and U.S. Treasury yields, while broader risk sentiment will impact gold prices. With a varied fundamental backdrop, caution is advised before continuing the downward trend observed over the past week.

Daily Market Movers: Gold prices continue to be pressured by rising U.S. Treasury yields and a slight strengthening of the USD.

  • Investors are lowering expectations for a change in Federal Reserve policy following strong U.S. employment reports for December.
  • The U.S. economy added 216,000 new jobs, exceeding the estimate of 170,000, with the unemployment rate stable at 3.7%.
  • U.S. factory orders grew by 2.6% in November, beating forecasts, although the ISM survey showed a significant decline in the services sector.
  • The ISM Non-Manufacturing Index fell to 50.6 in December, while the employment subcomponent dropped to 43.3, the lowest since July 2020.
  • Dallas Fed President Lorie Logan warned of inflation risks if financial conditions are not sufficiently tight, contrasting with the view of Richmond Fed President Thomas Barkin.
  • The yield on 10-year U.S. Treasury bonds remains above 4.0%, supporting the USD and putting pressure on gold prices.
  • Markets expect the first rate cut by the Fed in March and a total of five rate cuts of five basis points each in 2024.
  • Concerns over the Chinese economy and tensions in the Middle East may support safe-haven XAU/USD ahead of the U.S. consumer inflation data on Thursday.
  • Hezbollah in Lebanon attacked Israel as a "preemptive response" to the killing of senior Hamas leader Saleh al-Arouri on Tuesday.
  • An agreement between House Speaker Mike Johnson and Senate Majority Leader Chuck Schumer regarding national spending levels has a minimal impact on the market.


Warning!

That concludes the explanation of "XAUUSD Today: January 8, 2024 - Gold Prices Cause Panic Among Investors." 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 to serve as a reference in your trading.

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