Here is the XAUUSD news update for today, February 9, 2024. The price of gold (XAU/USD) remained stable throughout the first half of the European session on Friday, as traders were hesitant amid uncertainty over the Federal Reserve's (Fed) interest rate policy. Strong U.S. macro data and hawkish statements from FOMC members forced investors to lower their expectations for early rate cuts in 2024, supporting higher U.S. Treasury yields. This continued to weaken gold as a safe-haven.
 
The market still anticipates five rate cuts in the remaining seven FOMC policy meetings this year, keeping the U.S. Dollar (USD) defensive and providing support for gold prices. Investors are also cautious ahead of next week’s U.S. consumer inflation figures, which will influence future Fed policy and guide the movement of non-yielding gold prices.
 
Daily Market Drivers Summary: Gold prices await next week's U.S. Consumer Price Index (CPI) report for new direction.
 
  1. Strong U.S. macro figures and hawkish comments from Federal Reserve officials have forced investors to reduce their expectations for significant rate cuts this year, weighing on non-yielding gold prices.
  2. On Sunday, Fed Chair Jerome Powell expressed caution regarding easing policy, dampening hopes of a rate cut in March due to solid economic conditions.
  3. Thomas Barkin from the Richmond Fed also stated on Thursday that the central bank has time to review interest rate policies, requiring stable inflation data.
  4. This has kept the 10-year U.S. Treasury yield above 4.0%, weakening XAU/USD. Even though the U.S. Dollar has weakened, it has helped limit gold’s decline.
  5. Market participants are now awaiting next week’s U.S. consumer inflation data as guidance for this year’s rate cuts, which will provide new direction for gold prices.
  6. Although the commodity is facing a moderate weekly decline, it remains within a multi-week trading range since the start of the year, requiring caution for aggressive traders.
Warning!
 
The analysis of "XAUUSD Today: February 9, 2024 - Gold Traders Anticipate U.S. Inflation Storm" is based on fundamental and technical views from trusted sources, and is not a recommendation or invitation. Always remember that this content aims to enrich readers' information. Always conduct independent research regarding other forex information to be used as a reference in your trading.
 
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