Let’s rewind the week’s market tale, focusing on what shaped gold prices and what’s on the horizon. Strap in for a simple breakdown of the action!
Gold at a Glance
The first week of 2024 had gold prices on a bit of a ride. Initial dips gave way to resilience, closing the week strong. Here’s the lowdown on the key moments:
1. US Dollar Flexes
The US Dollar flexed its muscles early on, gaining strength on Tuesday. Gold, along with major US stock indexes, felt the pinch in the morning. A classic dance of strength and weakness unfolded.
2. ISM Manufacturing Survey
Wednesday, enter the ISM Manufacturing Survey. It hinted at mild weakness in the US industrial sector, causing minor ripples in gold’s world.
3. FOMC Meeting Minutes Drama
Wednesday was a day of anticipation, with investors eyeing FOMC meeting minutes. The consensus? No more rate hikes in 2024, but when’s the first cut? Gold took a dip, and the Dollar a rise. Yet, by afternoon, gold stood tall above $2042
4. December Jobs Report Surprise
Friday delivered a curveball with the December Jobs Report. Jobs galore, and the market rethought the Fed’s rate hike pause. Initial gold weakness reversed as reality settled in – a softer climb for gold prices.
5. ISM Service-Sector Survey Twist
Friday had more in store with the ISM Service-Sector Survey, suggesting shaky conditions. The pressure on the Fed for early rate cuts sparked gold prices, hitting $2060
Gold Outlook
After a mild seesaw, gold wrapped the week positively, holding strong around $2040. Eyes now turn to December CPI inflation data, a potential game-changer.
Short-Term Peek
The new year brought caution, a 1% slip initially, but Friday saw a comeback. All eyes are on US inflation data, shaping the short-term fate of XAU/USD.
Data Highlights
From ISM Manufacturing PMI to job stats, private sector employment, and the mighty Nonfarm Payrolls report, data moved markets. The Fed’s 2024 rate hike halt played puppeteer with gold’s path.
Looking Ahead
Next week, the spotlight shifts to December CPI data, the golden pivot. Core CPI takes the lead, scrutinized for its sway on US yields and XAU/USD. Chinese CPI data will also offer a peek into global gold demand.