Here’s the XAUUSD news update for today, December 12, 2023. Gold prices (XAU/USD) increased on Tuesday, reversing previous declines to the range of $1,976-$1,975, which marks a three-week low. Although gold managed to maintain intraday gains, it remained below $2,000 and lacked bullish conviction. Traders are cautious ahead of the release of the latest U.S. consumer inflation data, which could influence Federal Reserve (Fed) policy and impact gold prices, seen as a safe haven.

With the growing view that the U.S. central bank has finished tightening policy, the U.S. dollar (USD) faced restrictions on positive movement. This came after positive U.S. employment data provided a boost, while concerns about rising geopolitical tensions in the Middle East supported gold prices. Nonetheless, XAU/USD appeared to halt its two-day decline, depending on USD price dynamics ahead of the FOMC decision on Wednesday.

Daily Market Movers Summary: Gold prices are bolstered by the Fed's dovish stance ahead of U.S. CPI data.

  1. On Tuesday, U.S. defense officials reported cruise missile strikes by Houthi rebels in Yemen, which supported gold prices as a safe haven.
  2. Positive U.S. employment data from Friday made traders confident that the Federal Reserve would delay interest rate cuts until May, acting as a hindrance.
  3. A Fed survey in New York on Monday showed consumer inflation expectations fell to 3.4% annually, the lowest since April 2021.
  4. This data raised hopes that inflation would slow without a recession, prompting investors to reduce bets against Fed rate cuts in March 2024.
  5. Despite this, markets are confident that the U.S. central bank will begin easing monetary policy in the first half of next year.
  6. According to the CME Group's FedWatch Tool, investors are pricing in over a 40% chance of a 25 basis point rate cut in March and nearly 75% in May 2024.
  7. The U.S. dollar failed to capitalize on positive movement post-NFP as buyers remained reluctant ahead of U.S. consumer inflation data.
  8. The headline CPI is expected to rise 0.1% in November, with the annual rate falling to 3.1%. The core index is predicted to edge up from 0.2% to 0.3% MoM and remain at 4.0% YoY.
  9. Market attention shifts to the highly anticipated FOMC meeting results, announced during the U.S. session on Wednesday.


Warning!

This analysis of "XAUUSD Today: December 12, 2023 - Gold Awaits U.S. CPI" is based on insights from trusted sources and should not be considered advice or a 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.

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