Gold Prices Flat as Markets Eye Nonfarm Payrolls

Gold is almost unchanged on Friday, with the metal trading at a spot price of $1211.33 per ounce in the European session. In the US, today’s highlight is Non-Farm Employment Change. As well, the US unemployment rate will be released.

US employment data is in the spotlight, as the markets wait for the Nonfarm Employment Change and unemployment rate reports for December. Nonfarm Employment Change is one of the most important economic indicators, and traders should treat this event as a market-mover. The indicator had an outstanding reading of 321 thousand in November, but is expected to soften to 241 thousand in December. The unemployment rate has been creeping lower, and is expected to dip to 5.7%, down from 5.8% in November.

The Federal Reserve released the minutes of its previous meeting on Wednesday, with no surprises for the markets. There had been plenty of speculation that the insertion of the word “patience” in the previous policy statement signaled a more aggressive monetary stance. However, the minutes stated that Fed members remained of the view that Fed policy had not changed, and that a rate hike was unlikely before April.  Although economic growth continues to improve, inflation remains at very low levels, which means that the economy is in no danger of overheating, so there is no immediate need for a rate increase.

XAU/USD for Friday, January 9, 2015

XAU/USD January 9 at 9:30 GMT

XAU/USD 1211.33 H: 1214.35 L: 1208.13

 

XAU/USD Technical

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

 

  • XAU/USD is almost unchanged on Friday. The pair touched a high of 1214.35 in the Asian session, as the pair continues to put strong pressure on resistance at the 1215 line.
  • 1200 is an immediate support line.
  • On the upside, 1215 is under strong pressure. Will the pair break through before the end of the week? 1240 is stronger.
  • 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 is unchanged on Friday. This is consistent with the lack of movement shown by the pair. The ratio remains close to a split between open and short positions, indicating a lack of trader bias as to what direction the pair will take next.

XAU/USD Fundamentals

  • 13:30 US Nonfarm Employment Change. Estimate 241K.
  • 13:30 US Unemployment Rate. Estimate 5.7%.
  • 13:30 US Average Hourly Earnings. Estimate 0.2%.
  • 14:00 US Wholesale Inventories. Estimate 0.4%.
  • 18:20 US FOMC Member Jeffrey Lacker Speaks.

*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.