Gold shines as US yields slide; WTI tumbles

During the Asian session, New Zealand will release Producer Inflation data. Later in the day, attention will turn to the UK Retail Sales report. In the US, housing data is due with Housing Starts and Building Permits.

Here is what you need to know on Friday, November 17:

The US Dollar Index (DXY) rose marginally on Thursday and finished around 104.40. The Greenback recovered ground despite weak US economic data and the decline in US yields.

US Continuing Jobless Claims reached the highest level since 2022, and Initial Claims rose to 231,000, the highest level in nearly three months. Industrial Production declined by 0.6% in October, exceeding the 0.3% contraction expected. On the positive side, the Philadelphia Fed Manufacturing Survey Index rose from -9 to -5.9, and the Kansas Fed Manufacturing Activity index recovered from -8 to -3 in November.

The Dollar bottomed after the data but then recovered even as US yields headed towards weekly lows, with the 10-year falling to 4.43%. The data released on Thursday pointed to a softer labor market and, combined with recent inflation data, reinforced the perspective that the Federal Reserve is unlikely to raise interest rates further. On Friday, the US will report Building Permits and Housing Starts.

Gold jumped and posted the highest close in over two weeks, above $1,980. The yellow metal peaked at $1,987 and then pulled back moderately. The decline in yields helped XAU/USD gain momentum after breaking above the 20-day Simple Moving Average (SMA) and the $1,975 level. Silver reached the highest level in two months but failed to hold above $24.00 and trimmed gains, retreating to $23.75.

Oil prices tumbled, falling around 5%. The WTI settled near $73.00, the lowest in four months, affected by concerns about global oil demand.

EUR/USD finished practically flat around 1.0850. The pair hit a fresh monthly high just below 1.0900 and then pulled back. The bullish momentum is fading as the US Dollar strengthens. Eurostat will release the final reading of the October Consumer Price Index, which is expected to show no surprises. European Central Bank (ECB)  President Christine Lagarde will speak at the Frankfurt European Banking Congress. Her words will likely have little impact as the market expects the central bank to keep rates unchanged in the upcoming meetings.

GBP/USD lost ground but managed to finish above 1.2400. The bias is towards the upside, but the Pound faces resistance at the 100-day SMA at 1.2500. UK October Retail Sales data is due on Friday, with a 0.3% monthly increase expected.

NZD/USD traded significantly lower as the Kiwi weakened, falling below 0.6000. The third quarter’s New Zealand Producer Price Index is due on Friday.

The Australian Dollar failed to benefit from an upbeat jobs report and higher inflation expectations. AUD/USD fell from above 0.6500 to 0.6460.

The Canadian Dollar was among the worst performers, hit by the decline in oil prices. USD/CAD rose from 1.3685 to 1.3775. The key support is the 55-day SMA at 1.3655. The Industrial Product Price Index and the Raw Materials Price Index are due on Friday.