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

Goldman Sachs shares surge after earnings beat

News

Keep an eye on these key S&P 500 levels

News

US big banks report better-than-expected earnings

News

Crude oil declines on profit taking

News

Delta Air Lines shares crash despite earnings beat

News

GBP spikes ahead of major economic data

Trends & Analysis
News

Goldman Sachs shares surge after earnings beat

News

Keep an eye on these key S&P 500 levels

News

US big banks report better-than-expected earnings

News

Crude oil declines on profit taking

News

Delta Air Lines shares crash despite earnings beat

News

GBP spikes ahead of major economic data

Asset Watch

Gold price benefits from the US Dollar retreat

 

Tuesday, November 21, 2023

Gold price news, and analysis

• The US dollar falls as markets price in interest rates cuts
• The gold price rallies to a multi-week high

 

The US dollar price has witnessed a decline of around 3% since the release of the US inflation report for October. Both headline and core inflation levels came in lower than expected. The weakening of the US labor market, as indicated by the October jobs report, has cast doubts on the Federal Reserve’s inclination to raise interest rates. This has reinforced the market’s belief that US interest rates have peaked and are unlikely to experience any further increases.

The anticipated trend of declining gross domestic product during the fourth quarter of the year suggests that the growth rate of the American economy is likely to be less than the robust 4.9% growth seen in the third quarter. A significant contributor to this decline is the contraction in consumer spending, evident in the retail sales data which contracted by -0.1%. However, there is an expectation that consumer spending rates may experience a temporary rebound, especially after the American Thanksgiving holiday, followed by Black Friday sales and the Christmas season, typically characterized by increased spending.

Market watchers will closely monitor retail sales data for November and December. A substantial decline in spending during this period would be viewed negatively for the overall growth of the US economy. Such a scenario might prompt the Federal Reserve to consider accelerating the pace of interest rate cuts, deviating from previous expectations.

Gold Price Daily Chart

 

Chart source ADSS Platform

Gold prices have experienced a boost due to the decline in US dollar prices, reaching their highest levels in several weeks and nearing the $2,000 per ounce threshold. Currently trading within the range of 1949 to 2009, the precious metal may be poised to test the high end of this zone. A daily close above the high end could indicate a potential continuation of its ascent toward 2030, although traders should consider the possibility of a bounce at the resistance level around 2022.

Conversely, a reversal in the price trend with a daily close below the lower limit of the mentioned trading zone might prompt some traders to press the gold price towards the support area between 1911 and 1916. Nonetheless, the support level located at 1933 should be considered.


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.