Here is the XAUUSD news update for today, November 16, 2023. Gold prices (XAU/USD) received new buying interest on Thursday and currently appear to have halted the retracement decline from the previous one-week high, around the $1,975-1,976 area.

The weakness felt in U.S. equity futures markets turned out to be the main factor driving the safe-haven precious metal ahead of the European session. Additionally, growing confidence that the Federal Reserve (Fed) has finished its rate hikes provided extra support for the non-yielding gold.

However, the ongoing recovery of the U.S. Dollar (USD), after hitting its lowest level since September 1 due to weak U.S. consumer inflation data, may limit further gold price gains.

U.S. retail sales fell less than expected in October, which, along with an upward revision of the previous month’s already strong reading, led to a good increase in U.S. Treasury yields. This continues to support the Dollar and warrants caution before taking a bullish position in the XAU/USD market.

Daily Market Summary: Gold prices continue to find support from market uncertainty

The U.S. Producer Price Index (PPI) posted its largest drop since April 2020, declining by 0.5% in October. September’s data was also revised down, showing a PPI increase of 0.4% instead of 0.5%. This followed Tuesday’s U.S. CPI report, which showed consumer inflation slowing faster than expected, reinforcing expectations that the Federal Reserve may halt rate hikes. U.S. core retail sales fell for the first time in seven months in October, though the decline was smaller than expected, and the data was accompanied by an upward revision in September's data, showing strong gains. San Francisco Fed President Mary Daly, in an interview with the Financial Times on Wednesday, highlighted uncertainty over whether the central bank has done enough to bring consumer prices back to the 2% target. This creates uncertainty about when the Fed will start lowering interest rates, which could support the U.S. Dollar and possibly limit gold’s appreciation. Market participants now look forward to the U.S. economic calendar, which will release Weekly Initial Jobless Claims, the Philly Fed Manufacturing Index, and Industrial Production figures for fresh impetus. Additionally, speeches from key Fed officials will be closely watched for clues on short-term policy outlooks, potentially contributing to short-term trading opportunities in the XAU/USD market.

Warning!

This is the analysis of "XAUUSD Today: October 16, 2023 - Gold Surges, Limited Risk." This analysis is based on fundamental and technical perspectives from trusted sources and is not intended as advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research regarding other forex information for guidance in your trading.

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