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Gold soared above 5,500, the Fed stayed on hold, and the central bank suspected of intervention
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Hello everyone, today XM Forex will bring you "[XM Foreign Exchange Decision Analysis]: Gold surges past 5500, the Federal Reserve remains on hold and the central bank is suspected of intervention." Hope this helps you! The original content is as follows:
On January 29, in early Asian trading on Thursday, Beijing time, the U.S. dollar index was hovering around 96.16. On Wednesday, as the Federal Reserve kept interest rates unchanged, the U.S. dollar index continued to rebound during the day, returning to above 96, and finally closed up 0.61% at 96.34; the benchmark 10-year U.S. bond yield closed at 4.246%, and the 2-year U.S. bond yield, which is sensitive to the Fed's policy interest rate, closed at 3.578%. Spot gold's rapid rise since this month shows no sign of slowing down. On Wednesday, it exceeded US$5,400 per ounce for the first time. It surged US$220 during the day, the largest single-day increase, and finally closed up 4.6% at US$5,417.44 per ounce. Spot silver rose with gold, and finally closed up 3.97% at US$116.77 per ounce. Oil prices rose to their highest since late September last year on Wednesday as concerns about the situation in Iran grew. WTI crude oil fluctuated upward, returning to above $63, and finally closed up 1.47% at $63.57/barrel; Brent crude oil closed up 1.33% at $67.42/barrel.
Analysis of major currency trends
U.S. dollar index: As of press time, the U.S. dollar is hovering around 96.16. The U.S. dollar index rebounded to above 96.60 on Wednesday. White House Treasury Secretary Scott Bessent said that the United States is pursuing a strong U.S. policy, suggesting that the fundamentals are in place. Bessant also denied that the United States intervened in currency markets to support the yen. Technically, the U.S. dollar index is trying to stabilize above the 96.35 to 96.50 resistance levels. If this attempt is successful, the US Dollar Index will move towards the next resistance level, which is located in the 97.10 to 97.25 areabetween.



Gold and crude oil market trend analysis
1) Gold market trend analysis
In the Asian market on Thursday, gold hovered around 5525.87. Gold rose to a record high of $5,579, with gold's rebound benefiting from strong safe-haven demand amid ongoing geopolitical tensions, economic uncertainty and a weaker dollar. Geopolitical tensions persist after U.S. President Donald Trump issued a new warning to Iran on Wednesday. Trump urged Iran to "come to the table" and negotiate a "fair and just deal" that bans the development of nuclear weapons, otherwise the next U.S. attack will be worse. Iran, meanwhile, responded by threatening to strike back at the United States, Israel and their supporters.

2) Crude oil market trend analysis
On Thursday’s Asian session, crude oil was trading around 63.70. Oil prices climbed to four on WednesdayMonthly high, supported by geopolitical tensions and dollar weakness. The market was mainly driven by escalating tensions between the United States and Iran. U.S. President Donald Trump has urged Iran to return to nuclear deal negotiations or face more severe strikes, while Iran has warned of an unprecedented counterattack. At the same time, a U.S. aircraft carrier strike group has arrived in the Middle East, exacerbating market concerns about supply disruptions.

Foreign exchange market trading reminder on January 29, 2025
①15:00 Swiss December trade account
②18:00 Eurozone January labor Industry Sentiment Index
③18:00 Eurozone Economic Sentiment Index in January
④21:30 Number of initial jobless claims in the United States for the week to January 24
⑤2 1:30 US November trade balance
⑥23:00 US November factory orders monthly rate
⑦23:00 US November wholesale sales monthly rate
⑧23:30 US EIA natural gas inventories for the week to January 23
The above content is about "[XM Foreign Exchange Decision Analysis]: Gold surges above 5500, the Fed stands still The entire content of "Suspected Central Bank Intervention" was carefully www.xmtraders.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!
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