The potential for gold to reach the 2,000 – 2,020 area is very large

Economic News & Analysis

The US dollar slipped after data showed the number of Americans filing new claims for unemployment benefits hit a three-month high last week, with data showing an increase of 13,000 to 231,000 on week, well above market expectations of 220,000.

This suggests that job seekers experience difficulty in finding suitable work. The weakening of the US labor market is in line with the Fed's policy to suppress inflation.

Gold prices rose more than 1% on Thursday as the dollar and Treasury yields slumped, reinforcing expectations that the Federal Reserve will halt its rate hike cycle.

The price of gold on the market rose quite significantly by reaching its highest price of 1,987.86

The dollar index narrowed earlier losses and was flat, while the euro was also little changed at $1.08485.

Indications of a weakening US labor market weigh on Treasury yields. The 10-year Treasury note fell 9.2 basis points to 4.445%, from 4.537% late Wednesday.

2-year debt securities last fell 8.5 basis points to 4.846%, from 4.916%.

The Japanese yen weakened again by reaching its highest price of 151,427 in trading on Thursday (17/11).

Japan's economy contracted faster than expected in the third quarter amid slowing global demand and rising domestic inflation.

The currency also remained near its lowest level in more than three decades as the Bank of Japan reaffirmed its commitment to accommodative monetary policy and made only minor adjustments to yield curve control.

The British pound fell to hit a low of 1.23755, retreating from a two-month high of $1.2505 reached on Tuesday. Data showed that UK inflation fell more than expected in the October period.

This strengthens expectations that the Bank of England will consider lowering interest rates in the middle of next year.

WTI crude oil futures fell 5% and traded to hit a low of 72.15/barrel on Thursday, the lowest since July.

Oil refinery production in China fell 2.8% from the previous month's record in October, indicating a decline in industrial fuel demand in line with slowing industrial activity marked by an unexpected contraction in the country's manufacturing PMI.

In the United States, the latest data from the EIA showed a 7.6% decline in fuel product supplies from the previous week in mid-November.

US stocks closed mixed on Thursday, as traders assessed the latest economic data and earnings reports. The Dow Jones lost 45 points, snapping a 4-day winning streak, while the Nasdaq and S&P 500 ended slightly higher.

Gold Price Prospects for Friday (17/11/23)

Trading Data on Thursday (16/11)

Open: 1,959.85 High: 1,987.86 Low: 1,956.42 Close: 1,981.07 Range: $31.44

For the Resistance area, gold will test the 1,993.35 price area with a wider push towards the 2,002.41 – 2,009.31 area

For the support area, gold will continue to test the price level of 1,976.17 with deeper pressure towards the 1,968.28 – 1,960.30 area

Oil Price Prospects for Friday (17/11/23)

Trading data on Thursday (16/11)

Open: 76.54 High: 76.61 Low: 72.15.31 Close: 72.93 Range: $4.30

Oil will test the resistance area at 74.35 with a broader push towards the 75.02 – 76.56 area

For the support area Oil will test the 72.33 area with deeper pressure towards the 71.48 - 70.66 area.