Gold Surges to New All-Time High as USD Remains Uncertain.

Gold Hits Record High as Major Currencies Struggle for Direction

Gold extended its rally to a new all-time high on Thursday, while major currency pairs remained range-bound, unable to make a decisive move. Investors are closely watching key economic events, including the US Initial Jobless Claims report and the European Commission’s preliminary Consumer Confidence Index for February. Additionally, multiple Federal Reserve (Fed) policymakers are set to speak later in the American session, potentially influencing market sentiment.

Fed Minutes & US Market Sentiment

The Fed’s January meeting minutes revealed discussions on whether to slow or pause balance sheet reductions amid renewed concerns over the federal debt ceiling. Despite these debates, financial markets showed little reaction, with Wall Street’s major indexes closing slightly higher. Meanwhile, the US Dollar Index (DXY) remains steady near 107.00, following two consecutive days of modest gains.

Global Market Updates: AUD, EUR, GBP & JPY

• AUD/USD: Australia’s unemployment rate edged up to 4.1% in January, in line with expectations. However, full-time employment showed a strong increase of 54.1K jobs, supporting a slight recovery in the Australian Dollar (AUD) above 0.6360. Meanwhile, China’s central bank (PBoC) left its Loan Prime Rates (LPRs) unchanged, offering no immediate catalyst for market moves.
• EUR/USD: The Euro struggled to gain traction, marking its third consecutive daily decline, trading below 1.0450 in the European session.
• GBP/USD: Despite stronger-than-expected UK inflation data, the British Pound failed to maintain its strength. After minor losses on Wednesday, GBP/USD holds steady around 1.2600.
• USD/JPY: Growing expectations of a hawkish Bank of Japan (BoJ) policy outlook have strengthened the Japanese Yen (JPY). Japan’s 10-year bond yield hit a 15-year high, causing USD/JPY to drop near 150.00, its lowest level since December, with a 1% daily decline.

Market Outlook

With gold prices soaring and the US dollar facing mixed signals, traders will closely monitor upcoming economic data and central bank speeches for further direction. As global uncertainty persists, the forex and commodities markets remain on edge, setting the stage for potential volatility in the sessions ahead.

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