XAUUSD Is Back Above The $2000 Mark

Gold has rebounded above the psychologically important $2000 level.

Weaker-than-expected US retail sales numbers MoM (-0.8% vs -0.1% forecast) have extended support to the gold bulls as markets are still uncertain about the much-anticipated rate cuts.

However, stronger Nonfarm Payrolls (NFP) and Consumer Price Index (CPI) readings for January, underscore the possibility for the Fed to postpone the rate cuts.

Markets are currently pricing in a 32.9% chance of a rate hike in May.

Higher for longer rates may negatively affect the Investor’s interest in zero-yielding gold.

As of Thursday 15th Feb, total net assets of the world’s largest gold ETF (SPDR Gold Shares) totaled $53.9 billion, posting a $600.6 million decrease from Monday 12 Feb.

Investors may now be looking forwards to FOMC minutes next Wednesday along with the initial jobless claims reading due next Friday.

Dovish comments from the Fed and/or weaker initial jobless numbers may affect the market's rate cut expectations which in turn may be reflected in the XAUUSD.


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Disclaimer: Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial ...

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