Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS

Share on StockTwits

Exclusive: Gold Prices Transform into a New Economic Trap

Today's market analysis on behalf of Rania Gule Market Analyst at


January 24, 2024 ( Newswire) The price of gold (XAU/USD) declined during morning trading today, Wednesday, reaching $2025. The price remains confined within a narrow trading range, while traders seek to understand more about the timing of the Federal Reserve's interest rate cuts.

Here, I believe the focus will continue on the significant U.S. economic calendar this week, starting with the Purchasing Managers' Index (PMI) today, followed by the fourth-quarter Gross Domestic Product (GDP) on Thursday, and the Personal Consumption Expenditures (PCE) price index on Friday. These releases could lead to highly volatile price fluctuations upon their release.

Recently, investors have lowered their expectations for near-term monetary easing by the Federal Reserve following data indicating the resilience of the flexible U.S. economy. Several Federal Reserve officials last week emphasized the need for more inflation data before making any judgment on interest rates. This, in turn, helps the U.S. dollar to stay above its highest level since December 13, breaking through at 103.70 points yesterday, which is a key factor directly impacting the price of gold. However, geopolitical tensions, along with concerns about economic slowdown in China, could provide support for the strength of gold as a safe haven.

From my perspective, recent U.S. data suggests that the economy is in good shape, giving the Federal Reserve greater room to keep interest rates high for a longer period, acting as a negative pressure on the price of gold. Current market expectations indicate a significant chance of the Federal Reserve making its first interest rate cut in May, which was anticipated in March.

In the past hours, the U.S. military targeted three facilities used by the Islamic Resistance in western Iraq in direct response to a series of recent attacks on U.S. sites and bases, increasing the risk of escalating tensions in the Middle East, a positive factor for gold prices in the short and medium term.

It seems that investors are also hesitant to set strong directional expectations and prefer to wait and monitor the markets before the key U.S. economic data. These crucial data will play a major role in influencing market expectations regarding the Federal Reserve's future policy actions, which, in turn, will drive demand for the U.S. dollar and weaken the price momentum in the short term for gold.

More Info: Newswire

This news is published on the Newswire - a global digital news source for investors and business leaders

Disclaimer/Disclosure: is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: Learn more about publishing your news release and our other news services on the newswire

Global investors must adhere to regulations of each country. Please read privacy policy:

That's all it takes to get an article published on Investor Ideas - Learn More

Gold Mining Stocks - Gold Mining Stocks Directory, Gold Stocks News, Research and Resources

Investing ideas in gold and mining stocks

Like Gold Stocks? View our Gold / Mining Stocks Directory

Get News on Mining Stocks