Gold is heading for weekly losses and oil is losing control!

US stock indices fell at the end of yesterday’s session, Thursday, November 17, after hawkish statements made by a Federal Reserve official and data on the labor market, which led some investors to worry about further increases in interest rates.

James Bullard said the Fed needs to continue raising interest rates as tightening its policy so far “has had only a limited impact on the observed inflation.”

Oil prices fell at the close of trading yesterday, Thursday, November 17, by more than 3%, due to the pressure on demand as a result of the increase in cases of coronavirus in China, in addition to concerns about the interest rate increase in the United States.

The dollar rose yesterday, Thursday, November 17, as US Treasury yields increased as investors bet on the US Federal Reserve’s relative tightening of its policy, while the pound sterling fell as the government’s budget plans were announced.

Dollar index (USDX)

The dollar index continues to decline to its important resistance levels at 106.60 and indicates a possible continuation of the decline. In the hourly chart, the technical indicators are showing signs of a bullish swing from current levels, but the moving averages are indicating the opposite. In the meantime, the daily chart confirms the moving average readings and shows the possibility of a further decline towards 105.20.

The dollar rose yesterday, Thursday, November 17, with the increase in US Treasury yields, at a time when investors are betting on the US Federal Reserve to tighten its policy relatively, before returning today below its important resistance levels at 106.60.

Pivot point: 106.55

British Pound (GBPUSD)

Sterling, which already declined, fell slightly after UK Finance Minister Jeremy Hunt announced tax hikes and tighter public spending in an effort to restore stability to UK markets and reduce inflation.

The British currency fell in late trading 0.95% to $1.18, after earlier dropping to 1.25%, in a move that one analyst said was largely driven by dollar-related sentiment.

The British pound settles near its important resistance levels at 1.1900, supported by continued weakness in the US dollar.

Pivot point: 1.1860

Spot Gold (XAUUSD)

Gold prices stabilized yesterday, Thursday, November 17, as demand for the precious metal declined due to the latest geopolitical concerns, while hopes were reinforced that the Federal Reserve would be less aggressive in raising interest rates in the coming months.

There was little change in gold in spot transactions, and it recorded $1773.40 an ounce, just as there was little change in US gold futures contracts, and it recorded $1776.20 an ounce.

Gold prices reached a three-month high of $1,786.35 an ounce on Tuesday, after news of two people being killed by Russian missiles in Poland near the border with Ukraine.

Investors are awaiting the US Federal Reserve’s decision to raise interest rates in December, and the interest rate hike will affect the desire for the precious metal.

From a technical wise, today we see a continued decline in gold prices below 1765, with conflicting technical readings in the short term and within profit-taking operations.

Pivot point: 1,763

US Crude (USOUSD)

At the close of trading, Brent contracts fell by 3.3%, or by $3.08, to close at $89.78 a barrel, while US Texas crude contracts fell by 4.6%, or $3.95, to $81.64 a barrel.

Oil prices fell at the close of trading yesterday, Thursday, November 17, by more than 3%, due to the pressure on demand as a result of the increase in cases of coronavirus in China, in addition to concerns about the interest rate increase in the United States.

Moreover, the Chinese health authorities announced a high rate of daily infections with the Corona virus, and Chinese oil refineries requested a reduction in Saudi and Russian oil purchases.

Recession fears prevailed this week, despite the European Union’s imminent implementation of an embargo on Russian crude oil on December 5 and the OPEC+ group’s supply cut.

Pivot point: 82.60