Here’s the update on XAUUSD for today, November 16, 2023. The price of gold (XAU/USD) attracted some buyers for two consecutive days on Wednesday and continued to rise, nearing the monthly peak achieved the day before.
 
Increased support for the Federal Reserve's (Fed) tightening monetary policy has caused the yield on 10-year U.S. government bonds to approach its lowest level in two months. Additionally, the market anticipates that the U.S. central bank will begin to lower interest rates in May 2024, which is seen as a driver for gold prices that do not yield returns.
 
On the other hand, the FOMC meeting minutes released on Tuesday showed that officials are committed to further tightening policy if progress in controlling inflation encounters setbacks.
 
This hawkish outlook helped the U.S. Dollar (USD) gain additional positive traction and continue its moderate rebound from its lowest level since August 31. This may limit further increases in gold prices. Moreover, the recent failure to build momentum above the psychological level of $2,000 calls for caution among optimistic traders.
 
Daily Market Movers Summary: Gold prices are positive for the second consecutive time, driven by hopes for a dovish Fed policy.
  1. Gold prices are positive for the second consecutive time, driven by hopes for a dovish Fed policy.
  2. The latest Federal Reserve minutes express support for ongoing rate increases to control inflation and support the U.S. Dollar.
  3. Market participants are confident that the U.S. central bank will keep rates stable, with predictions of potential rate cuts in the spring of 2024.
  4. The yield on 10-year U.S. bonds weakened, nearing its lowest level in two months, driving funds into non-yielding gold.
  5. U.S. home sales fell to their lowest level in 13 years in October, according to the National Association of Realtors report.
  6. Israel and Hamas agreed to release 50 civilians in Gaza in exchange for Palestinian prisoners and a four-day ceasefire.
  7. The U.S. military struck Iran-backed facilities in Iraq in response to attacks on U.S. troops by Iran and its affiliates.
  8. The market reacted minimally to developments in the Middle East, which did not significantly impact gold as a safe haven.
  9. Traders are awaiting U.S. macro data, including Weekly Jobless Claims, Durable Goods Orders, and revisions to the Michigan Consumer Sentiment Index, for short-term impetus.
Warning!

This analysis is based on fundamental and technical perspectives from reliable sources and is not intended as advice or solicitation. Always remember that this content aims to enrich readers' information. Conduct independent research on other forex information to guide your trading decisions.
 
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