Gold prices dropped on Monday, as the markets continue to analyze the Nonfarm Payrolls release on Friday. Gold dropped back below the $1300 level, trading at $1299.10 in the European session. In the US, today’s sole release is Consumer Credit.
On Friday, all eyes were on Non-Farm Payrolls, one of the most important economic indicators. The indicator rose nicely last in March, climbing to 192 thousand, compared to 175 thousand a month earlier. However, the markets were looking for more, with the estimate standing at 199 thousand. The Unemployment Rate remained unchanged at 6.7%, but the markets had expected a drop to 6.6%. Although these numbers were not as strong as hoped, the Federal Reserve is expected to continue trimming QE when it meets at the end of April.
Gold prices remain under heavy selling pressure as generally positive US numbers have increased speculation that we could see the Fed raise interest rates sooner than expected. Fed chair Susan Yellen has tried to dampen talk of interest rate hike, stating last week that the Fed has no plans to raise rates until at least six months after QE is terminated.
XAG/USD for Monday, April 7, 2014
XAG/USD April 7 at 11:00 GMT
XAG/USD 1284.23.H: 1306.70 L: 1284.23
- XAG/USD posted strong gains on Monday and starts the new trading week above the $1300 level.
- 1273.78 is providing support. This is followed by support at 1260.98.
- 1312.62 is the next line of resistance. It is followed by resistance at 1338.98.
- Current range: 1273.78 to 1312.62
Further levels in both directions:
- Below: 1273.78, 12.60.98, 1241.75 and 1215.64
- Above: 1312.62, 1338.98, 1355.80 and 1388.54
OANDA’s Open Positions Ratio
XAG/USD ratio is pointing to gains in long positions in Monday trading. This is consistent with what we are seeing from the pair, as gold has posted strong gains against the dollar. XAG/USD ratio is made up of a substantial majority of long positions, reflecting a trader bias towards gold continuing to move higher against the US currency.
Gold is trading just below the $1300 level as we start the new trading week. XAG/USD is steady in the European session.
- 12:30 US Consumer Credit. Estimate 0.2%.
*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.