Gold Stable Ahead of GDP Release

Gold is showing little movement on Tuesday, as the spot price stands at $1202 per ounce. On the release front, there are two key events on the schedule – Preliminary GDP and CB Consumer Confidence.

All eyes are on US GDP for Q3, which will be released later on Tuesday. The markets are expecting a strong gain of 3.3%. This is not as strong as the Q2 release, which posted a gain of 4.2%. If the indicator meets or exceeds expectations, we could see the US dollar post gains in the North American session.

The euro hasn’t had much to cheer about lately, and the currency took a tumble on Friday, losing over 150 points. This was a result of remarks from ECB head Mario Draghi, who warned that that inflation expectations were declining to levels that were very low and said the ECB is ready to expand its stimulus program. Deep interest rate cuts haven’t boosted growth or inflation, so the ECB has reached deeper into its toolbox and purchased covered bonds and asset-backed securities. So far, these purchases have been from the private sector, but the ECB could decide to expand these purchases to government bonds, known has quantitative easing (QE). However, there is strong resistance to QE from national central banks, such as the powerful German Bundesbank.

 

XAU/USD for Tuesday, November 25, 2014

XAU/USD November 25 at 10:45 GMT

XAU/USD 1202.02 H: 1202.95 L: 1195.75

 

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1156 1175 1200 1215 1240 1255

 

  • XAU/USD was uneventful in in Asian session. Early in the European session, the pair has broken above resistance at 1200, which continues to see activity.
  • 1200 has reverted to a support level and is a weak line. 1175 is stronger.
  • 1215 is an immediate resistance line. 1240 is next.
  • Current range: 1200 to 1215.

Further levels in both directions:

  • Below: 1200, 1175, 1156, 1130 and 1111
  • Above: 1215, 1240, 1255 and 1275

 

OANDA’s Open Positions Ratio

XAU/USD ratio has a majority of long positions, indicative of trader bias in favor of gold moving to higher levels.

XAU/USD Fundamentals

  • 13:30 US Preliminary GDP. Estimate 3.3%.
  • 13:30 US Preliminary GDP Price Index.  Estimate 1.3%.
  • 14:00 US HPI. Estimate 0.5%.
  • 14:00 US S&P/CS Composite-20 HPI. Estimate 4.7%.
  • 15:00 US CB Consumer Confidence. Estimate 95.9 points.
  • 15:00 US Richmond Manufacturing Index. Estimate 17 points.

*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.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.