Here is the update on XAUUSD for today, November 24, 2023. Gold prices (XAU/USD) saw a moderate increase on Thursday as the US Dollar (USD) weakened, although there was no follow-through buying, and it remained below the psychological $2,000 mark throughout the Asian session on Friday.
 
Although the FOMC minutes on Tuesday leaned hawkish, investors seem convinced that the US central bank will likely prefer to keep interest rates stable rather than raise them. This limited the USD's recovery this week from its lowest level since August 31 and continued to be a limiting factor for non-yielding gold.
 
However, US macroeconomic data released on Wednesday showed resilience in the labor market and increased uncertainty regarding the Fed's next policy move.
 
Additionally, the significant rise in US Treasury bond yields supported the Greenback and limited gold's gains in USD terms. Nevertheless, the precious metal remains on track to post its second consecutive weekly gain as traders await the release of the US Preliminary Manufacturing Index data for additional momentum on the last day of the week.
 
Daily Market Drivers Summary: Gold Price Direction Remains Unclear Amid Mixed Fed Signals
 
  1. Diverging forces failed to provide a significant boost to gold prices, resulting in weak/range-bound price action during the Asian session on Friday.
  2. Uncertainty between the Federal Reserve's hawkish stance and market expectations for rate cuts in 2024 keeps traders hesitant to take clear positions on XAU/USD.
  3. The FOMC meeting minutes released on Tuesday showed policymakers' support for keeping interest rates higher for longer to control inflation.
  4. Bets for a December rate hike faded after the October inflation report. Additionally, the market expects a 25% chance of a rate cut in early March 2024.
  5. Optimistic US labor market data and consumer sentiment on Wednesday, along with recovering US Treasury yields, supported the USD and limited the precious metal's gains.
  6. Meanwhile, the Fed's dovish stance justifies cautious USD buying and may continue to support this commodity ahead of the preliminary US PMI data for November.
 
Warning!
 
This is the explanation of "XAUUSD Today: November 24, 2023 - Gold vs. Fed Interest Rates." This analysis is based on fundamental and technical perspectives from reliable sources and does not constitute advice or an invitation. Always remember that this content is intended to enrich readers' information. Always conduct independent research first regarding other forex information to use as a reference in your trading.
 
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