The gold price correction was supported in 1960, and the pullback in inflation increased expectations that the Federal Reserve had completed its rate hike

On Wednesday (November 15) in the US market, stocks continued to rise on the basis of a strong rebound in the previous session, supported by more encouraging inflation data.

At press time, the Dow Jones Industries Average Index was up 0.35%. The S & P 500 Index and the Nasdaq Composite Index were up 0.42% and 0.55%, respectively.

The yield on the benchmark 10-year Treasury note rose more than 10 basis points in trading on Wednesday after plunging 18 basis points on Tuesday.

The producer price index (PPI), which measures wholesale prices, fell 0.5% in October, its biggest monthly decline since April 2020. However, not all economic data was positive as retail sales also fell.

Jay Hatfield, founder and chief executive of Infrastructure Capital Advisors, said: "Obviously interest rates are a key driver for equities because PPI is very, very cool, as we expected." "Not because of PPI, but because retail sales are a little hot relative to expectations."

Wall Street just wrapped up a strong session, with the S & P 500 Index and Nasdaq posting their best day since April. The gains came after the Consumer Price Index (CPI) remained flat in October, while the Dow Jones Consensus is expected to rise slightly.

In corporate news, Target's better-than-expected third-quarter results sent its shares up 17 per cent. Shares in VF, the clothing company, rose nearly 15 per cent after JPMorgan raised its rating from underweight to neutral.

Wall Street is also setting its sights on Washington as lawmakers try to avoid a government shutdown. On Tuesday night, the House passed a bill to avoid a government shutdown, and the measure will go to the Senate for a vote. If lawmakers pass, the legislation will go to President Biden. Without an appropriations bill, the federal government is expected to shut down this weekend.

Gold prices fell on Wednesday as the dollar rallied, and expectations that the Federal Reserve might end its rate hikes limited the decline. Spot gold fell 0.03% to $1,962.22 an ounce as of press time.

The dollar index rose 0.4%, undermining the attractiveness of gold prices.

Gold prices rose more than 1 per cent in the previous session after data showed US consumer prices were unchanged in October, the latest sign that inflationary pressures have subsided.

David Meger, director of metals trading at High Ridge Futures, said: "The CPI and PPI results are positive and continue to support gold prices as expectations that inflation will continue to fall add to expectations that the Fed has already completed rate hikes."

According to the CME FedWatch tool, the market is pricing in a 100% probability that the Federal Reserve will leave interest rates unchanged in December.

Although gold is considered an inflation hedge, rising interest rates have weakened the attractiveness of non-yielding gold.

Tai Wong, an independent metals trader in New York, said: "Gold has moved lower after the initial rally as yields have supported it. I think the outlook for [gold] assets will remain positive but move more cautiously."