Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

News

Buy the JPMorgan dip?

News

Goldman Sachs shares surge after earnings beat

Trends & Analysis
News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

News

Buy the JPMorgan dip?

News

Goldman Sachs shares surge after earnings beat

News

Gold loses some shine after US inflation data

 

Wednesday, December 13, 2023

Today’s headlines

What’s happening: Gold prices settled slightly lower on Tuesday, following the release of US inflation data.

What happened: The yellow metal pared gains and hovered just above its lowest level since November 20 on Tuesday.

Strength in the US dollar, following the release of US inflation data, also exerted pressure on gold.

Why it matters: The US reported that its annual inflation rate had slowed to 3.1% in November, from 3.2% in the previous month, in-line with consensus estimates. The latest reading was also the lowest in five months.

US consumer prices rose 0.1% from the prior month in November, versus market expectations of a flat reading. The annual core consumer price inflation rate came in unchanged versus October, at more than a two-year low of 4% in November.

Investors shifted their focus to major central bank meetings for gaining more insights into future rate moves by policymakers. Lower interest rates generally lend support to non-yielding assets, like gold.

The US dollar pared some losses following the release of inflation data. Strength in the greenback exerts pressure on gold, as this makes it more expensive for foreign currency holders.

The US dollar index, which measures the greenback’s performance versus a basket of major peers, lost around 0.2% to 103.87 on Tuesday.

Gold for February delivery declined 50 cents to $1,993.20 per ounce.

In other metals trading, silver for March delivery slipped 4 cents to $23.02 per ounce, while March copper gained 1 cent to $3.79 per pound. Platinum rose to $931, and palladium settled higher at $982.30.

What to watch: Investors await interest rate decision and economic projections from the US Federal Reserve today. The US central bank is widely expected to keep interest rates unchanged and begin cutting rates early next year. The European Central Bank and the Bank of England will announce their interest rate decisions on Thursday.

The release of PPI data will also remain in focus. Producer prices in the US, which declined 0.5% in October, is expected to increase 0.2% in November. Investors will also continue monitoring the geopolitical situation.

The markets today

The Canadian dollar will be in focus today after falling to its weakest level since the start of the month

Context: The CAD/USD forex pair moved lower on Tuesday, amid a sharp decline in crude oil prices.

Details: Prices for crude oil, one of Canada’s major exports, fell sharply on Tuesday amid global growth concerns. WTI crude oil for January delivery lost $2.71 to settle at $68.61 a barrel on Tuesday.

US crude oil production climbed to a record high of 13.2 million bpd (barrels per day) in September, while Canada’s production is set to increase by 10% over 2024 to reach a new high of approximately 5.3 million bpd.

A decline in the US dollar following the release of inflation data from the country also exerted pressure on the loonie.

Investors expect the Bank of Canada to be among the first major central banks to cut rates next year.

The CAD/USD forex pair lost around 0.1% to reach 1.3590 on Tuesday. The S&P/TSX Composite Index shed 0.42% to close at 20,233.84, amid a decline in energy stocks.

What to watch: With no major economic report scheduled for release today, investors will watch the US Federal Reserve’s interest rate decision.

Data on manufacturing sales and new motor vehicle sales from Canada, due to be released on Thursday, and data on housing starts and wholesale sales, scheduled for release on Friday, will remain in focus.

Other Markets: US trading indices closed higher on Tuesday, with the Dow Jones index, S&P 500 and Nasdaq 100 up by 0.48%, 0.46% and 0.82%, respectively.

The news shaping the markets

Ukrainian President Volodymyr Zelenskyy concluded a meeting to discuss the aid impasse with US senators in Washington. The news sent the safe-haven US dollar index higher this morning.


India’s total passenger vehicle sales rose by 4.3% year-over-year to 288,062 in November. This marked a slowdown from the 17.3% growth reported a month ago and exerted pressure on the INR/USD forex pair.


New Zealand’s current account deficit widened to NZ$11.465 billion in the third quarter, from NZD 11.089 billion in the year-ago period, which sent the NZD/USD pair lower in forex trading this morning.


South Korea’s unemployment rate increased to 2.8% in November, from 2.6% a month ago. This being the highest unemployment rate since July exerted pressure on the KRW/USD forex pair.


US crude stockpiles fell by 2.349 million barrels in the week ended December 8, versus a gain of 0.594 million barrels in the prior week, sending the WTI crude oil prices higher this morning.

What else to watch today

Turkey’s retail sales, UK’s GDP growth, goods trade balance, industrial production, manufacturing production, balance of trade and construction output, South Africa’s inflation rate, retail sales and SACCI business confidence index, Eurozone’s industrial production, India’s money supply M3, US MBA Mortgage applications, crude oil inventories, gasoline stocks change, distillate stocks, Germany’s current account, Russia’s gross domestic product, China’s new yuan loans, money supply M2, value of outstanding loans and loans to private sector, as well as Argentina’s inflation rate.


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.