Gold remains under the key level of $1300, as the spot price stands at $1293.13 per ounce late the European session. The metal has now slipped about 2% in the past week. On the release front, it’s a quiet day, highlighted by Core Durable Goods Orders. The markets are expecting a healthy gain after a decline in the May release. On Thursday, US Unemployment Claims sparkled but New Home Sales were well short of expectations.
Unemployment Claims tumbled last week, as the key indicator fell to 284 thousand, its lowest level since February 2008. This surprised the markets, which had expected a reading of 310 thousand. The strong release continues a string of solid employment data, and the dollar could get a boost from the good news. As well, good news on the employment front is bound to increase speculation about a rate increase by the Federal Reserve.
US housing data was dismal on Thursday, as New Home Sales slumped to a three-month low. The key indicator fell to 406 thousand, compared to 504 thousand in the previous release. The markets were way off in their forecast, with an estimate of 485 thousand. There was much better news earlier in the week, as Existing Home Sales jumped to 5.04 million, surpassing the estimate of 4.94 million. This was the best showing we’ve seen since October.
XAU/USD for Friday, July 25, 2014
XAU/USD July 25 at 9:15 GMT
XAU/USD 1293.13 H: 1294.51 L: 1290.80
- XAU/USD was unchanged in the Asian session and the lack of movement has continued in European trading.
- The round number of 1300 is weak resistance. 1315 is stronger.
- 1275 is providing support. 1252 follows.
- Current range: 1275 to 130.
Further levels in both directions:
- Below: 1275, 1252, 1240 and 1218.
- Above: 1300, 1315, 1331, 1354
OANDA’s Open Positions Ratio
XAU/USD ratio is almost unchanged on Friday. This is consistent with the pair’s movement, as the pair is showing little movement. The ratio has a majority of long positions, indicative of trader bias towards gold breaking out and moving upwards.
- 12:30 US Core Durable Goods Orders. Estimate 0.6%.
- 12:30 US Durable Goods Orders. Estimate 0.4%.
*Key releases are highlighted in bold
*All release times are GMT
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.