Gold falls as U.S. dollar rises
Nov 16, 2023
Chicago [US], November 16: Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as the U.S. dollar strengthened.
The most active gold contract for December delivery fell 2.20 U.S. dollars, or 0.11 percent, to close at 1,964.30 dollars per ounce.
The U.S. Labor Department reported Wednesday that U.S. producer price index (PPI) fell 0.5 percent in October after advancing 0.4 percent in September, the biggest fall since April 2020 and indicating subsiding inflation pressures. The agency reported Tuesday U.S. consumer price index (CPI) in October rose 3.2 percent from a year ago, down from 3.7 percent in the previous month.
With both CPI and PPI data weaker than expected, the market is expecting the Federal Reserve to leave interest rates unchanged at its December meeting, or may even be done with this round of hike cycle.
Other economic data released Wednesday were mixed. The New York Fed's Empire State business conditions index, a gauge of manufacturing activity in the state, rose 13.7 points to 9.1 in November, the highest level since April.
The U.S. Commerce Department reported that U.S. retail sales fell 0.1 percent in October to 705 billion dollars, down slightly from a revised increase of 0.9 percent a month earlier. This was slightly better than the median expectation of economists.
Silver for December delivery rose 40.60 cents, or 1.76 percent, to close at 23.538 dollars per ounce. Platinum for January delivery rose 9.20 dollars, or 1.03 percent, to close at 902.00 dollars per ounce.
Source: Xinhua
