Gold Holds Near Record, Amid Fed and Geopolitical Uncertainty
Gold remained comfortably above US$4,600 on Thursday (January 15th), despite experiencing a slight correction early in the session due to profit-taking following the previous day's strong rally. After surging to a new record high of US$4,643 on Wednesday, XAU/USD briefly dipped to around US$4,581 before recovering.
In recent trading, XAU/USD has hovered around US$4,615, indicating that market participants have not yet fully closed their positions despite the slight easing of headline tensions.
This limited correction also reflects a temporary reduction in safe-haven capital flows. Anti-government protests in Tehran have reportedly begun to subside, while US President Donald Trump has signaled that direct military action against Iran is not an imminent option. As a result, the "risk premium" that had been supporting the precious metal has begun to diminish, but not enough to reverse the trend.
However, the bigger picture remains fragile. Geopolitical risks remain high, and market concerns about the Fed's independence continue to act as a psychological cushion for gold, keeping prices near all-time highs.
From a monetary policy perspective, expectations of a US interest rate cut ultimately remain a structural support for non-yielding gold. Although some Fed officials have recently sounded hawkish and have not signaled an imminent rate cut, the market still expects a rate cut in the second half of the year.
Market attention will now turn to a relatively light US data calendar today: Initial Jobless Claims, the NY Empire State Manufacturing Index, and the Philly Fed Manufacturing Survey. Comments from Fed officials will also be closely monitored for clues as to whether the central bank is beginning to make room for easing—or extending its "higher rates for longer" phase. (alg)
Source: Newsmaker.id
