The spot of gold prices slumped nearly 1% in Thursday (November 17) evening trading session to $1761.70 an ounce. On Comex New York, gold futures prices fell by 0.6% to $1761.60.
It was as did the following XAU/USD chart showing a 0.79% drop to $1759.60. Not only gold traded on the stock exchange, but the price of physical commodity was also reported to have decreased.
A Data on Swiss gold exports to India fell, but for China and Turkey it was still quite high. The strengthening of the US Dollar to the range of 107.24 is a stumbling block for the prices today.
The reason is that yesterday's United States Retail Sales data showed a 1.3% increase on a monthly basis. That number was for sure higher than market expectations.
Gold May Continue It’s correction
Gold appears to have run out of steam as the United States Dollar continues to fade. This was said by Michael Hewson, an analyst at CMC Markets.
According to Hewson, that precious metal could continue the correction to $1730 before it can climb back. If the USD and bond yields in general continue to weaken, gold has a chance to rise.
It is especially until the end of the year. The Federal Reserve officials have not yet announced a halt to rate hikes. San Francisco President Mary Daly revealed that a rate hike to 4.75%-5.25% early next year still makes sense.
That opinion was shared in an interview with CNBC some days ago. Daly also said that the top officials of the US central bank have no plans to stop the hike rate at all.
Geopolitical Turmoil Doesn’t Support the Price of Gold
Meanwhile, geopolitical turmoil no longer supports the price of gold. The explosion in Poland, which was suspected to be related to the Ukrainian-Russian war, had caused panic in the market.
However, it is surprising that some concerns have now subsided. The reason is that the President of Poland has confirmed that the missile that exploded on his territory was not from the Russian side.
That explosion was actually from the defense of Ukraine that accidentally fell in Poland. Before, Gold prices fell below 1770 per troy ounce supported after higher-than-expected America’s retail sales data.
This again increases the chances of an aggressive Fed rate hike. Moreover, some Federal Reserve officials continue to give hawkish signals in the market.
NZD / USD is Bullish Right Now
San Francisco Fed President Mary Daly, for example, stressed that they are not considering a pause when it comes to rate hikes.
Meanwhile, Kansas City Fed President Esther George said Fed officials should be "careful not to stop too soon" when it comes to rate hikes. Everything has to be considered properly.
Besides that, The New Zealand Dollar currency pair against the US Dollar (NZD/USD) over the past few weeks has been bullish. The price moved from Support level 2 (0.58389).
That wasuntil it broke out of Support 1 (0.59519), and Resistance 1 (0.60687). However, the price strengthening in the H1 timeframe was restrained by the Resistance level 2 (0.61945).
NZD is Maybe corrected again
The New Zealand dollar is now potentially correcting towards Support 1 and a Sell signal. This opportunity will be even stronger if the price manages to break through and close below 0.611.
In addition, this opportunity is by the Commodity Channel Index indicator. Elsewhere, Employment Change measures the change in the number of workers in Australia compared to the previous month.
The number of workers is strongly influenced by the available jobs, and is an early indicator of consumer spending that shows overall economic activity.
This data is released simultaneously with the unemployment rate data calculated on a monthly basis. The unemployment rate is always considered by the RBA to determine growth targets and interest rate change policies.
