- Gold prices are bolstered by an upbeat market sentiment keeping the US Dollar offered.
- Investors cheered China’s planning to support the property market and the relaxation of its Covid zero-tolerance policy.
- A busy US economic docket keeps traders wary of propelling the US Dollar.
- Minnesota Fed Kashkari: The Fed must avoid cutting rates prematurely.
Gold price rallied to eight-month highs around $1,865.15, though slightly retraced some of its gains amidst an upbeat market sentiment, spurred by China’s support to its housing market, alongside its border reopening, as it relaxes Covid-19 zero-tolerance measures. Investors get ready for a busy economic calendar in the United States (US), while Federal Reserve’s (Fed) officials began to cross newswires. At the time of writing, the XAU/USD is trading at $1,856.01, above its opening price by 1%.
Upbeat market mood spurred by China’s news underpinned Gold
Wall Street is poised to open higher, as shown by equity futures rising, while the US Dollar (USD) weakens. Factors like Chinese authorities planning to deliver additional support to property developers, aimed to relax liquidity stress in some “too-big-to-fail” developers, sparked a rally in Asian stocks. Meanwhile, China’s reopening was cheered by investors, even though the country reported 5 Covid deaths on January 3, vs. three from the previous day.
US Dollar weakens as traders brace for US data
Aside from this, investors waiting for US economic data has bolstered Gold prices, as Tuesday’s US Dollar longs exited ahead of market-moving data. Following the S&P Global Manufacturing PMI release on Tuesday, the Institute for Supply Management (ISM) for December is expected to drop from 49.0 to 48.5. Also, the JOLTs report is estimated to hit 10 M, vs. 10.334M in the previous month, while the main spotlight would be the release of the Federal Open Market Committee (FOMC) December meeting minutes.
Minnesota Fed Kashkari sees rates around 5.4%
In the meantime, Minnesota’s Fed President Neil Kashkari (voter in 2023) said that it would be appropriate to continue to hike rates “at least at the next few meetings” until inflation has peaked and foresees the Federal Funds rate (FFR) at 5.4%. He added that the Fed must avoid cutting the policy rate prematurely and would consider cutting only when it’s convinced inflation is on its way back down to 2%.
Gold Daily Chart
Gold Key Technical Levels
|Today last price||1857.12|
|Today Daily Change||18.96|
|Today Daily Change %||1.03|
|Today daily open||1838.16|
|Previous Daily High||1850.03|
|Previous Daily Low||1824.7|
|Previous Weekly High||1833.38|
|Previous Weekly Low||1797.11|
|Previous Monthly High||1833.38|
|Previous Monthly Low||1765.89|
|Daily Fibonacci 38.2%||1840.35|
|Daily Fibonacci 61.8%||1834.38|
|Daily Pivot Point S1||1825.23|
|Daily Pivot Point S2||1812.3|
|Daily Pivot Point S3||1799.9|
|Daily Pivot Point R1||1850.56|
|Daily Pivot Point R2||1862.96|
|Daily Pivot Point R3||1875.89|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.