Gold prices are listless on Friday, as the spot price stands at $1321.47 per ounce in the European session. Gold edged lower on Thursday, as US employment numbers looked sharp, led by Nonfarm Payrolls. On Friday, US markets are closed for the Fourth of July holiday, so traders can expect thin trade during the day.
US employment numbers were the perfect prelude to a long holiday weekend in the US, as Nonfarm Payrolls and the Unemployment Rate sparkled. Nonfarm Payrolls, one of the most important indicators, bounced back in June with a strong gain of 288 thousand new jobs. This crushed the estimate of 214 thousand. Unemployment Claims was steady at 315 thousand, almost replicating the estimate of 314 thousand. There was more good news from the Unemployment Rate, which continues to move downward. The indicator dipped to 6.1%, its lowest level since September 2008. The strong employment numbers are sure to increase speculation about an interest rate hike by the Federal Reserve, and after the Fourth of July holiday, the markets will be closely attuned to remarks from Federal Reserve policymakers.
As widely expected, the ECB maintained the benchmark interest rate at 0.15% at its July policy meeting. This was is sharp contrast to the previous meeting, in which the ECB lowered the benchmark rate from 0.25% and introduced negative deposit rates for the first time. At this week’s meeting, ECB head Mario Draghi noted that inflation rates remain very low, and said that the ECB was ready to implement “unconventional instruments” if necessary. As well, Draghi reiterated that the ultra-low interest rates would remain at current levels or lower for the foreseeable future.
XAU/USD for Friday, July 4, 2014
XAU/USD July 4 at 10:15 GMT
XAU/USD 1321.47 H: 1323.20 L: 1318.60
- XAU/USD is showing little movement on Friday. The pair inched higher late in the Asian session and is unchanged in European trading.
- 1315 is an immediate support line. The round number of 1300 is stronger.
- 1331 is the next resistance line.
- Current range: 1315 to 1331.
Further levels in both directions:
- Below: 1315, 1300, 1275 and 1260
- Above: 1331, 1354, 1375 and 1388
OANDA’s Open Positions Ratio
XAU/USD is unchanged on Friday. This is reflected in the pair’s lack of movement. The ratio has a slight majority of long positions, pointing to trader bias towards gold breaking out and moving to higher levels against the US dollar.
- There are no US releases on Friday.