JadeFOREX

Gold bulls have enjoyed a positive start to the year with the precious metal pushing back to levels last seen over six months ago. A combination of lower US government bond yields and growing fears of a global recession have pushed gold ever higher with sellers absent so far in 2023. The US dollar (DXY) is around half a point above its multi-month low, as US bond yields slip lower, while future US rate hike expectations continue to be pared back. The first test for market doves will come later today when the FOMC minutes of the December 15, 2022 meeting are released. While US inflation is starting to ease, Fed chair Jerome Powell and the committee are likely to restate that rates will go as high as the central bank needs them to as they continue their fight with sky-high inflation.