The price of gold surged past the $2,720 mark per troy ounce, marking its highest level since mid-December. This notable increase occurred despite a corrective move in gold that persisted for another week. Investors are closely monitoring economic indicators and speculations, such as the potential rate hike by the Bank of Japan (BoJ) at its first meeting in 2025, adding complexity to global market dynamics.
In the currency market, the USD/JPY pair experienced some intraday selling pressure following the release of optimistic Machinery Orders data from Japan. This development halted the USD/JPY's recovery from sub-155.00 levels, a low not seen in nearly four weeks. As traders turned their attention to other economic indicators like PMIs for the Euro and Pound, the backdrop of tax cuts and the Federal Reserve's future decisions remained influential.
Meanwhile, the AUD/USD pair weakened to approximately 0.6190 during the early Asian session on Monday. This move came after snapping a two-day losing streak, largely driven by rising expectations that the BoJ might increase rates, which capped gains in the AUD/USD pair. With markets anticipating potential shifts ahead of major political events, such as Trump's inauguration, investors remain vigilant.
The US market closure on Monday due to the Martin Luther King Day bank holiday added another layer of complexity to the global trading landscape. Market participants are preparing for potential impacts as geopolitical and economic factors continue to play significant roles.
It is important to note that the authors and FXStreet are not registered investment advisors, and this report is not intended as investment advice. The views expressed herein represent those of the authors and do not necessarily align with the official policy or position of FXStreet or its advertisers.