Gold: Bearish pressures mounting – OCBC

EUR/USD manages to ragain some poise on Wednesday, posting humble gains around the 1.1650 zone in a context of a modest selling pressure on the US Dollar prior to the release of Retail Sales and Producer Prices.

GBP/USD trades on the positive foot on Wednesday, receding from earlier highs around 1.3460 and revisiting the 1.3440 region amid a modest uptick and some selling interest surrounding the Greenback ahead of US data.

Gold reaches the fresh record high of $4,639.77 during the Asian hours on Wednesday. Precious metals, including Gold, attract buyers amid growing bets on Federal Reserve rate cuts following the softer inflation in the United States. US inflation data for December signaled easing underlying US inflation, strengthening views that price pressures are gradually cooling.

The United States Census Bureau will publish November Retail Sales on Wednesday. The delayed data is expected to show that sales rose a modest 0.4% in the month, following no change in October. The figure is relevant as it corresponds most closely with the consumer spending component of Gross Domestic Product.

Jerome Powell's eight-year tenure as Chair of the Federal Reserve is coming to a close during a period of intense pressure on the US central bank and divided views among policymakers about the appropriate stance of monetary policy. 

Meme coins such as Dogecoin, Shiba Inu, and Pepe recorded gains of 7% to 14% on Tuesday, signaling a potential reversal to the upside. DOGE and SHIB hold steady after the bounce back while the frog-themed PEPE extends gains, signaling further upside potential.