Gold has edged lower on Thursday, with the spot price at $1308.34 per ounce late in the European session. On the release front, today’s highlight is Unemployment Claims, and we could see some movement from gold if there are any surprises from the key employment indicator.
The fighting in Iraq continues, as militants linked to al-Qaeda have overrun the north of the country. The insurgents are threatening the capital of Baghdad, and the situation has become a major crisis for both the Iraqi and US governments. Over the weekend, US President Barack Obama said the crisis could spread to other countries in the region. Meanwhile, the situation is tense in Ukraine, as the government has vowed to press ahead and sign an economic association agreement with the EU on Friday. The crises in Iraq and Ukraine have pushed the price of gold above the $1300 level, as the metal is considered a hedge during periods of geopolitical instability.
On Wednesday, US Final GDP in Q1 took a tumble. The markets were braced for a decline of 1.8%, but the indicator shocked with a much sharper drop of 2.9%. There was more bad news to follow, as Core Durable Goods Orders declined by 0.1%, its first decline in five months. The estimate stood at 0.3%. Durable Goods Orders looked even worse, coming in at -1.0%, shy of the estimate of -0.1%. Despite the awful GDP, the currency markets remain calm and the dollar is stable.
XAU/USD for Thursday, June 26, 2014
XAU/USD June 26 at 11:00 GMT
XAU/USD 1311.67 H: 1319.80 L: 1308.34
- Gold was steady in the Asian session and edged lower in European trading.
- The round number of 1300 is providing support. This is followed by support at 1275.
- 1315 has switched to a resistance role. This is followed by resistance at 1331.
- Current range: 1300 to 1315.
Further levels in both directions:
- Below: 1300, 1275, 1260 and 1231
- Above: 1315, 1331, 1354 and 1375
OANDA’s Open Positions Ratio
XAU/USD ratio has pointed to gains in Thursday trade. This is not reflected in the pair’s movement, as gold as edged lower. The ratio is made up of a majority of long positions, reflecting trader bias towards gold prices reversing directions and moving higher.
- 12:30 US Unemployment Claims. Estimate 314K.
- 12:30 US Core PCE Price Index. Estimate 0.2%.
- 12:30 US Personal Spending. Estimate 0.4%.
- 12:30 US Personal Income. Estimate 0.5%.
- 14:30 US Natural Gas Storage. Estimate 101B.
- 14:30 US Crude Oil Inventories. Estimate -1.2M.
*Key releases are highlighted in bold
*All release times are GMT