Here is the update on XAUUSD news for February 27, 2024. The price of gold (XAU/USD) attracted buyers after a slight decline and held above the $2,030 level ahead of the European session on Tuesday. The US dollar (USD) struggled to attract buyers due to the decline in US Treasury yields, supporting gold prices as a safe haven. Although the cautious mood in the equity markets favored precious metals, expectations that the Federal Reserve (Fed) would maintain high interest rates limited the rise in gold prices.

Strong data on US consumer and producer prices, as well as the resilience of the US economy, led investors to lower expectations for aggressive policy easing by the Fed. Minutes from last week’s FOMC meeting indicated caution in lowering interest rates, supporting US Treasury yields and limiting gold appreciation. Traders may also be waiting for the release of the US Personal Consumption Expenditures (PCE) Index on Thursday before making aggressive bets.

Market Movers Summary: Gold prices gained support from the weakening USD, but bullish sentiment remains limited.

  1. US 10-year Treasury yields continue to be pressured, nearing 4.275%, weakening the US dollar and supporting gold prices.
  2. Recession in Japan and the UK, along with geopolitical tensions in the Middle East, favored precious metals as safe-haven assets.
  3. US President Joe Biden hopes for a ceasefire and hostage pause agreement in the Israel-Hamas conflict.
  4. Minutes from last week's FOMC meeting and comments from Federal Reserve officials indicated a cautious stance regarding interest rate cuts.
  5. Kansas City Fed President Jeffrey Schmid suggested patience in addressing inflation before cutting rates.
  6. Markets anticipate a potential rate cut in March, with a 60% chance of a rate cut at the June FOMC meeting.
  7. Traders are looking forward to US macro data on Tuesday: Durable Goods Orders, Conference Board Consumer Confidence Index, and Richmond Manufacturing Index.
  8. Investors are watching the release of US Q4 GDP on Wednesday and the PCE Index on Thursday.
  9. The PCE data is considered the Fed's preferred inflation measure, affecting rate cut expectations and providing new impetus for XAU/USD.

Warning!

This is the news regarding "XAUUSD Today: February 27, 2024 - Gold Prices Hold at $2,030." This analysis is based on fundamental and technical perspectives from trusted sources and is not intended as advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct your own research regarding other forex information to use as a reference in your trading.

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