Here’s the XAUUSD news update for today, January 17, 2024. Gold prices (XAU/USD) have dropped to their lowest level of the week on Wednesday, although they managed to bounce back from the 50-day Simple Moving Average (SMA) support at the start of the European session. However, the precious metal remains in the red for the second consecutive day as speculation about a Federal Reserve (Fed) interest rate cut diminishes. This supports an increase in US Treasury yields and pushes the US Dollar (USD) to its highest level since December 13, weakening gold prices that offer no yield.

Nonetheless, geopolitical tensions and unsatisfactory economic growth in China provide support for gold prices as a safe haven, limiting further declines. Therefore, it would be wise to wait for a sustained breakout below the mentioned support before considering new bearish bets on XAU/USD. Market participants are now looking forward to the US economic calendar, including the release of monthly Retail Sales and Industrial Production data. Fed member speeches could also influence the USD and provide a boost to gold prices.

Daily Summary: Gold prices fall amid uncertainty over Fed rate cuts; lower risks limit declines.

  1. Fed Governor Christopher Waller’s statements weakened expectations for a rate cut in March, hindering non-yielding gold prices.
  2. Waller cautioned the Fed to be careful with rate cuts, triggering an increase in US Treasury yields.
  3. The US 10-year Treasury yield remains stable above 4.0%, supporting the US Dollar and limiting non-yielding gold prices.
  4. Tensions in the Middle East had little impact on the safe-haven XAU/USD or bullish sentiment.
  5. The US launched airstrikes in Yemen, escalating tensions in the region.
  6. China's economy grew by 5.2% in the last quarter of 2023.
  7. Quarterly data showed China’s GDP rose by 1.0% in Q3, with December retail sales and industrial production increasing by 7.4% YoY and 6.8% YoY, respectively.
  8. The NBS stated that the Chinese economy faces external challenges and low consumer prices.
  9. Geopolitical risks and economic difficulties in China limit bearish bets on gold.
  10. Traders are awaiting US data, with December Retail Sales projected to grow by 0.4% and Industrial Production remaining stable.
  11. Speeches by Fed Governors Michael Barr and Michelle Bowman could influence the USD and commodities.

Warning!

This analysis of "XAUUSD Today: January 17, 2024 - Gold Prices Plummet, Buyers Under Pressure" is based on fundamental and technical perspectives from reliable sources and is not intended as advice or solicitation. Always remember that this content aims to enrich the readers’ information. Always conduct independent research regarding other forex information to serve as a reference for your trading.

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