Gold Price Corrects In New York As USD Slides

Gold tested its 200DMA above USD 1790 earlier on Wednesday’s session but has since slipped back to the mid-USD 1780.
Gold is currently in a wait to see mode ahead of Friday’s key US inflation numbers. The gold Index is trading flat in the New York session near USD 1,784 and has moved between a range of USD 1,779.71 and USD 1,793.15 and is currently correcting from the lows as the USD slides.

The US dollar is down by 0.4% falling from a high of 96.379 to a low of 95.890 as measured by the DXY index. US indices are mixed as the Nasdaq Composite traded higher, and government bond yields extended their gains.

Following Chair Jerome Powell’s comments last week when speaking to the Senate Banking Committee, market expectations are that the Fed could double the pace of tapering.

This could come as soon as December’s meeting. This will give the central bank the optionality to lift interest rates faster than it previously anticipated. Currently, two to three rate increases are priced in the market for 2022 which had been supporting the dollar.

As for data from today, US job openings rose to 11.033 million in October from 10.602 million in September according to the Bureau of Labor Statistics, compared with 10.469 million openings expected in a survey compiled by Bloomberg.

The level of hiring remains well below the number of job openings, confirming that businesses are finding it difficult to fill positions.