Gold Stable in Post-Holiday Trade

Gold is trading quietly on Friday, as the spot price stands at $1184 per ounce. There are no US releases on Friday, so traders can expect light trading during the day.

Ahead of the Thanksgiving holiday, the US released a batch of data on Wednesday and the numbers were anything but impressive. Unemployment Claims jumped to 313 thousand, its highest level since mid-September. Core Durable Goods Orders declined 0.9%, its third decline in four readings. The estimate stood at 0.5%. New Home Sales fell to a 3-month low, dropping to 458 thousand. This was short of the estimate of 471 thousand. Pending Home Sales was no better, declining by 1.1%, well off the estimate of 0.9%. There was better news from UoM Consumer Sentiment, which posted a fourth straight gain, rising to 88.8 points. However, this was short of the estimate of 90.2 points. Despite the weak numbers, market sentiment towards the US economy remains high, and the dollar held its own against gold.

XAU/USD for Friday, November 28, 2014

XAU/USD November 28 at 9:55 GMT

XAU/USD 1184.92 H: 1190.08 L: 1181.76

 

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1130 1156 1175 1200 1215 1240

 

  • XAU/USD edged lower in the Asian session. The pair is steady in the European session.
  • 1175 is a weak support level. 1156 is stronger.
  • The round number of 1200 is the next resistance line. 1215 follows.
  • Current range: 1175 to 1200.

Further levels in both directions:

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

 

OANDA’s Open Positions Ratio

XAU/USD ratio is almost unchanged on Friday. This is consistent with the limited movement we’re seeing from the pair. The ratio has a slight majority of long positions, indicative of slight trader bias towards gold moving to higher ground.

XAU/USD Fundamentals

  • There are no US releases on Friday.

 

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.