Here’s the update on XAUUSD news today, March 12, 2024. The gold price (XAU/USD) fell on Tuesday and remained below the $2,180 level at the beginning of the European session. Traders reduced their bullish bets as the daily charts indicated extremely overbought conditions ahead of the release of U.S. consumer inflation figures. The U.S. CPI report will influence expectations about the Fed's interest rate policy and play a crucial role in determining the direction of gold prices.

The U.S. dollar saw a slight increase, weakening gold prices, although speculation about a Fed rate cut and falling U.S. Treasury yields could provide support. Geopolitical tensions and expectations of a weakening global economy in 2024 may limit the decline of gold as a safe haven. Therefore, it is wiser to wait for a strong follow-up on the sell-off before confirming that XAU/USD has reached its peak and is ready for further declines.

Summary of Daily Market Movement: Gold prices impacted by USD strength, but the decline is limited.

  • Rearrangement of trading before US inflation data pressures gold prices during the Asian session, although the decline remains limited.
  • The US CPI report plays a significant role in influencing expectations for a rate cut by the Federal Reserve, providing a fresh boost for XAU/USD.
  • The headline CPI is expected to rise slightly, while the Core CPI is projected to drop to 3.7% YoY.
  • US employment reports have increased speculation about a rate cut, pulling 10-year US Treasury yields down to their lowest level in five weeks.
  • The FedWatch tool indicates a 70% chance of a rate cut in June, supporting the USD and metals.
  • Despite high inflation being disruptive, low CPI could trigger a new increase in gold prices.

Warning!

This is the news regarding “XAUUSD Today: March 12, 2024 - Negative Profit! Gold Prices Held Back by US CPI.” This analysis is based on insights from reliable fundamental and technical sources and is not to be considered as advice or an invitation. Always remember that this content aims to enrich readers' information. Always conduct your own independent research regarding forex information to use as a reference in your trading.

Get the latest news and articles from GIC Indonesia by checking Google News daily to stay updated on the latest in forex and crypto. Trade on GICTrade using an ECN account to enjoy trading with low spreads starting from zero!