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Update on XAUUSD for January 10, 2024. The price of gold (XAU/USD) experienced some supply pressure after rising to $2,040 on Tuesday and closing with minimal gains. In the Asian session on Wednesday, gold struggled to attract significant interest as traders sought clarity regarding the Federal Reserve's (Fed) interest rate cut plans before making bets. Market attention remains on the release of U.S. consumer inflation figures on Thursday, which could impact gold price movements in the short term.
Following a strong U.S. jobs report for December, investors have reduced expectations for a more aggressive easing of policies by the Fed. This has supported U.S. Treasury yields, bolstering the U.S. Dollar (USD) and limiting gold's gains, which do not provide returns. Nonetheless, geopolitical risks from the Israel-Hamas conflict and concerns regarding economic recovery in China continue to support gold as a safe-haven asset.
Daily Market Movers Summary: Gold prices are struggling to find a clear direction due to mixed fundamental signals.
- The uncertainty over when the Federal Reserve will cut interest rates is hindering traders from taking new positions in gold.
- A report from the New York Fed on Monday stated that projections for U.S. consumer inflation have dropped to the lowest level in three years, triggering speculation about a change in Fed policy.
- The resilience of the U.S. economy experiencing inflation above target provides room for the central bank to maintain high interest rates, supporting the U.S. Dollar and limiting gold.
- Bearish traders are reluctant to act before the U.S. consumer inflation data is released on Thursday.
- CNBC reported on the largest attack by Iranian-backed Houthi militants on commercial shipping vessels, citing senior U.S. Department of Defense officials.
- Senior officials from the People's Bank of China indicated the possibility of using monetary policy tools to support reasonable credit growth.
- The PBoC will strengthen counter-cyclical and cross-cyclical policy adjustments to support China's economic growth, according to the officials.
- There is no relevant macroeconomic market-moving data from the U.S. on Wednesday, leaving XAU/USD dependent on USD price dynamics.
Warning!
That concludes the explanation regarding "XAUUSD Today: January 10, 2024 - Traders Await Price Increase After U.S. CPI." This analysis is based on insights from fundamental and technical perspectives from reliable sources and should not be considered as advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research regarding other forex information as a reference in your trading.
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