Here is the XAUUSD update for February 16, 2024. Gold prices (XAU/USD) remain in a narrow range above $2,000 ahead of the European session, pressured by a stronger US dollar and expectations of a Federal Reserve (Fed) rate cut after weak US Retail Sales data. Despite ongoing geopolitical risks in the Middle East, their impact is limited by the positive sentiment in equity markets.

Traders are awaiting US macroeconomic data such as the Producer Price Index (PPI), New Housing, and Michigan Consumer Sentiment Index, along with FOMC member speeches that could influence gold prices. XAU/USD is set for its second consecutive weekly loss, with the market focusing on next week's FOMC minutes release and global PMI data on Wednesday and Thursday.

Daily Market Summary: Gold struggles to attract buyers due to higher US bond yields and a stronger USD.
  1. Although gold has seen a moderate recovery, it has been unable to fully capitalize on the diverse strengths this week, remaining near its lowest levels since November 13.
  2. The U.S. 10-year Treasury yield above 4.0% has revived demand for the USD, limiting gains for XAU/USD.
  3. Disappointing U.S. data on Thursday raised expectations for an earlier rate cut by the Federal Reserve, weakening the safe-haven gold.
  4. The chances of a rate cut in May have slightly increased to 40%, and in June to 80%, following weak U.S. Retail Sales data.
  5. U.S. Retail Sales fell by 0.8% in January, with non-auto sales contracting by 0.6% last month.
  6. Import prices rose by 0.8% in January, while the annual rate dropped by 1.3% over the past two years.
  7. Jobless claims fell by 8,000 to 212,000 last week, marking the lowest level in a month.
  8. Federal Reserve Atlanta President Bostic: The U.S. central bank is considering interest rate cuts.
  9. Bostic: A strong economy requires patience in monetary policy; there is no urgency for interest rate cuts.
  10. The Israeli military strikes Lebanon, raising the risk of conflict in the Middle East.
  11. Traders monitor the US Producer Price Index for clues on Fed policy and the path for interest rate cuts.
  12. US economic calendar for Friday: release of New Home Sales and Early Michigan Consumer Sentiment Index for February.
  13. Along with the speeches from FOMC members, this boosts USD demand and creates potential short-term opportunities for XAU/USD.


Warning!

The analysis "XAUUSD Today: February 16, 2024 - Intraday Movements Leave Gold Prices Confused!" is based on both fundamental and technical perspectives from reliable sources. It is not intended as trading advice or a recommendation. Always remember that this content is meant to enrich readers' information. Make sure to conduct your own research before using any forex-related information as a basis for your trades.

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