01/02/2024
surged in , reaching multi-week highs due to heightened geopolitical tensions in the . The current decline in US 10-year treasury yields before the Federal Reserve's policy meeting further fueled the demand for as a haven.
In today's market, by 0.8% to $2,033 per ounce, hitting a session low of $2,018. This comes after a marginal 0.15% loss on the previous Friday, attributed to robust .
Last week marked the second consecutive weekly decline for gold, dropping over 1%, as the likelihood of a US interest rate cut in March diminished.
Geopolitical concerns escalated following drone attacks that resulted in the death of three US servicemen near the Syrian borders in northern Jordan. This incident, occurring amid the Hamas-Israel war, increases pressure on US President Joe Biden to address Iranian influence in the region.
US 10-year yields fell by 0.8 basis points on Monday, approaching multi-week lows. This decline supported non-yielding assets and coincided with the upcoming Federal Reserve policy meeting, crucial for understanding the potential trajectory of US interest rates in 2024.
As of now, the odds of a 0.25% US interest rate cut in the Fed's March meeting stand at 49%, with the probability increasing to 93% for a cut in May. Traders are anticipating a total of six interest rate cuts in the United States this year, up from the initial expectation of five cuts last week.
In terms of gold holdings, the SPDR Gold Trust experienced a decrease of 2.88 tonnes on Friday, reaching a total of 856.05 tonnes, the lowest level since October 18.
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