Last: 
Here is the XAUUSD news update for today, January 26, 2024. Gold prices (XAU/USD) rose for the second consecutive day on Friday, although trading remained below $2,025 during the Asian session. Stronger-than-expected US economic growth and signs of slowing inflation pressured US Treasury yields, supporting the rise in gold prices. Additional factors such as geopolitical risks in the Middle East and global economic uncertainty further bolstered gold's appeal as a safe-haven asset.
However, expectations of Federal Reserve rate cuts could limit the downside of the US Dollar, warranting caution before placing bullish bets on gold ahead of US inflation data and the FOMC meeting on January 30-31. XAU/USD is likely to end the week in the red for the second consecutive week, marking its third decline in the past four weeks.
Daily Market Drivers Summary: Gold prices benefit from lower US bond yields and geopolitical risks ahead of US inflation data.
- The 10-year US Treasury yield fell below its one-month high, supporting gold prices for the second consecutive day on Friday.
- US economic data on Thursday showed growth of 3.3% during the fourth quarter of 2023, surpassing the consensus estimate of 2.0%.
- Details from the report indicated that the core PCE Price Index remained stable, signaling a decrease in inflationary pressures.
- This outlook strengthened the belief that the US economy is likely to avoid a recession, even as US Weekly Initial Jobless Claims rose to 214,000.
- US Durable Goods Orders were unchanged in December, while new orders excluding transportation and defense increased by 0.3%.
- Tensions in the Middle East, particularly the Israel-Hamas conflict, raised concerns of a broader regional conflict.
- Economists expect a weakening global economy in 2024, driving investment in precious metals as a safe haven.
- Uncertainty remains regarding when the Federal Reserve will cut borrowing costs amid a strong domestic economy.
- Investors are watching the US Personal Consumption Expenditures Price Index for signals on Fed policy and the short-term direction of XAU/USD.
Disclaimer!
The explanation about "XAUUSD Today: January 26, 2024 - Gold Prices Struggle for Demand" is based on fundamental and technical analysis from reliable sources and is not intended as advice or solicitation. Remember, this content aims to provide information for readers. Always conduct independent research before using any other forex information as a reference for your trades.
Get the latest news and articles from GIC Indonesia, which you can check daily on Google News for the latest updates on the forex and crypto world. Trade on GICTrade using an ECN account to enjoy trading with low spreads starting from zero!
