Gold hits record high – Silver peaks on Fed rate cut speculation

Andrey Goilov RoboForex

Gold prices have soared to an all-time high of 2288.00 USD per troy ounce, while silver reached its highest in two years, driven by speculation surrounding the US Federal Reserve's monetary policy. This surge followed comments from two Fed officials, Mary Daly of the FRB San Francisco and Loretta J. Mester of Cleveland. Both anticipate three rate cuts by the Fed in 2024, although they emphasised there is no immediate need for these adjustments.

The anticipation of a more accommodative monetary policy has been the primary driver behind gold's significant 11% price increase this year, demonstrating substantial gains for what is typically considered a conservative investment. However, this optimism is somewhat tempered by the current US economic data, which presents a complex backdrop for the timing of these expected rate cuts.

Investors and market watchers are now eagerly awaiting remarks from the US Fed Chair Jerome Powell, who is expected to provide further insights into the Federal Reserve's monetary policy outlook soon.

Precious metals traditionally benefit in low-interest-rate environments since they do not offer yields like interest-bearing assets. This dynamic underscores the current rally in gold and silver prices.

Technical analysis of XAU/USD

H4 chart analysis: the XAU/USD pair has corrected to 2230.00 USD and initiated a new upward wave targeting 2379.80 USD. Following this target, a correction towards 2270.00 USD is anticipated before the price potentially moves towards 2430.00 USD. The MACD indicator, with its signal line well above zero and trending upward, supports this bullish scenario.

H1 chart analysis: on the H1 chart, XAU/USD has experienced a growth wave, reaching 2266.80 USD, with the market updating this peak today. A consolidation phase around this level is expected, with a breakout potentially leading to a further rise to 2310.73 USD and possibly extending towards 2379.80 USD. The Stochastic oscillator, currently below 80 and poised to drop to 50 before rising again, aligns with this forecast.ecommendations and reviews contained herein.

Author

Andrey Goilov

RoboForex

Higher economic education. Andrey Goilov has been working on the Forex market since 2005. A financial analyst and successful trader. Preference in trading is highly volatile instruments.

EUR/USD treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold the battle of wills continues with bulls not ready to give up

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.