Overnight market review During the Asian session on Wednesday (January 4), spot gold fluctuated and rose, and is currently trading around $1,846 per ounce, which is expected to record four consecutive positives. Because the market expects the Fed to further slow down the pace of interest rate hikes in 2023, and even cut interest rates at the end of the year, U.S. bond yields fell for three consecutive trading days before, and continued their decline on Wednesday, providing gold prices with upward momentum.
In addition, data showing a growing risk of a global recession and geopolitical tensions between Russia and Ukraine also supported gold prices.
With a possible recession, uncertainty over the Fed’s rate hike path and geopolitical risks, “investors remain somewhat cautious and gold looks quite attractive,” the data said.
However, the U.S. dollar index rebounded sharply on Tuesday, making gold bulls still have scruples.
Trading strategy suggestion: do more at low positions
All transactions involve risks, and the above analysis is for reference only. Be sure to set the number of hands and remember to set a stop loss when placing an order.