World gold prices are supported by the need for safe haven capital in the context of Israel expanding its military operations on the ground to attack the Hamas group. This could make conflict more widespread in the Middle East region
The focus this week is on investors eyeing the Fed's two-day monetary policy meeting and the US monthly jobs report on Friday. They are also watching policy decisions from the Bank of England and the Bank of Japan this week.
The Bank of Japan overnight left monetary policy unchanged but said it would “patiently continue to ease monetary easing” until the BOJ achieves inflation stabilizing at 2%.
Fed Chairman Jerome Powell and his colleagues are expected to keep the door open to further policy tightening as strong consumer spending and tightening labor market conditions could cause consumer inflation to return. so difficult to control.
Cleveland Fed President Loretta Mester said before November's monetary policy that higher bond yields were equivalent to a 25 basis point (bps) rate hike. The Fed could use higher Treasury rates as a substitute for further policy tightening.
"If the Fed takes a "tough" stance on monetary policy, then we will see a somewhat negative reaction from gold. Although gold is considered a hedge against inflation, higher interest rates will reduce its appeal. instructions for this item,” Wyckoff said.