Gold Holds, Geopolitics Key
Gold prices (XAU/USD) remained stable on Friday (January 16th), after briefly surging to a new record high near $4,643 earlier this week. Currently, gold is trading around $4,610, on track for a modest weekly gain. Last week's initial surge was driven by geopolitical tensions and concerns over the independence of the Federal Reserve (Fed).
The easing of tensions in Iran has slightly dampened demand for gold as a safe-haven asset. Meanwhile, stronger US economic data and hawkish statements from Fed officials have reinforced expectations that interest rate cuts will likely be delayed, thus curbing the rise in non-yielding gold prices.
However, broader geopolitical risks remain supportive of prices, limiting further declines. Investors still see the possibility of two Fed rate cuts by year-end, although the chances of near-term easing are fading. Gold's movement is now heavily dependent on geopolitical news and developments in US monetary policy.
With a relatively quiet US economic calendar ahead of the Fed meeting on January 27-28, gold is expected to move within a limited range. Traders will continue to monitor comments from Fed officials for fresh signals on policy direction, as the central bank enters a policy blackout period ahead of the crucial meeting. (alg)
Source: Newsmaker.id
