Spot gold may rise into 2,0712,079 range technicals
Market bets for 166 bps of U.S. rate cuts in 2024

Jan 15 Reuters Gold prices rose on Monday, holding above the 2,050 level on safehaven appeal from elevated tensions in the Middle East and on renewed bets for an early rate cut by the U.S. Federal Reserve.

Spot gold was up 0.3 at 2,055.30 per ounce, as of 0830 GMT, after marking its biggest daily gain since Dec. 12 on Friday.

U.S. gold futures rose 0.4 to 2,059.20.

The war between Israel and Hamas reached its 100th day as Israel continued its fierce offensive, while Houthi militia threatening response to U.S. air strikes on Yemen kept risks of escalations in the Middle East elevated.

Gold is just trading as a proxy for frontend yields, which itself is a proxy for amped up expectations of rate cuts in the U.S., with the market now looking past the higherthanexpected CPI figures, said Kyle Rodda, a financial market analyst at Capital.com.

Data on Friday showed U.S. producer prices unexpectedly fell in December, sending 10year Treasury yields sliding in response.

Overall, traders are betting on 166 basis points bps of Fed rate cuts this year, higher than Friday morning39;s bets of 150 bps.

Traders are pricing in a 79 chance that they could begin as soon as March, according to LSEG39;s interest rate probability app, IRPR.

In the runup to the Fed39;s Jan. 3031 meeting, things look reasonably constructive for gold, provided an absence of anything that proves that…