Gold prices have surged, surpassing the $2,720 mark per troy ounce for the first time since mid-December. The precious metal's corrective move continued for another week, reflecting broader market dynamics. Investors are keeping a close watch on upcoming economic events that might influence global markets. Notably, the Bank of Japan (BoJ) is expected to raise interest rates during its first meeting in 2025, adding another layer of anticipation to the economic landscape.
Euro and Pound traders are particularly focused on upcoming Purchasing Managers' Index (PMI) data. These indicators are crucial for assessing economic health and could significantly impact trading strategies. Meanwhile, the USD/JPY pair experienced some intraday selling pressure following the release of positive Machinery Orders data from Japan. The pair had stalled its recovery from sub-155.00 levels, marking a nearly four-week low.
In the United States, the markets will take a brief pause as they are closed on Monday in observance of the Martin Luther King Day bank holiday. As traders prepare for market shifts, the impending inauguration of former President Donald Trump has added another layer of uncertainty. Tax cuts and the future direction of the Federal Reserve remain key considerations in these evolving economic conditions.
The Australian Dollar saw movement with the AUD/USD pair weakening to around 0.6190. This shift snapped a two-day losing streak as trading commenced in the early Asian session on Monday. Rising expectations that the BoJ will increase rates have also put a cap on the AUD/USD pair's potential gains.
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