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Gold Pushes Above $1300 As Ukraine Tensions Flare

Gold is on the move on Tuesday, and has crossed above the key $1300 level. Early in the North American session, spot gold is trading at $1308. The metal has moved higher as tensions increase in Ukraine. In economic news, US JOLTS Job Openings improved in March.

Gold often moves higher as a result of geopolitical turmoil, and this was the case on Tuesday as well. Tensions between the US and Russia continue to increase over the Ukraine. On Monday, pro-Russian demonstrators took over government buildings in an industrial city in the east of the country and declared their independence. Russia has warned the Ukraine not to react with force, while the US has accused Russia of continuing to foment unrest in the Ukraine ahead of elections in May.

In the US, the dollar is down broadly, but there was good news on the employment front, as JOLTS Job Openings jumped above the 4.00 million level, climbing to 4.17 million last month. This was well above the estimate of 3.99 million and comes after Nonfarm Payrolls and Unemployment Claims both missed their estimates late last week. Meanwhile, there is increased speculation that we could see the Fed raise interest rates sooner than expected. Fed chair Janet 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. On Wednesday, as the Federal Reserve releases minutes from its last policy meeting, and traders should treat this event as a market-mover.

 

XAU/USD for Tuesday, April 8, 2014

Forex Rate Graph 21/1/13

XAU/USD April 8 at 15:40 GMT

XAU/USD 1308.07 H: 1314.23 L: 1296.96

 

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1241.75 1260.98 1273.78 1312.62 1338.98 1355.80

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

XAU/USD ratio is showing little movement in Tuesday trading. This is not consistent with what we are seeing from the pair, as gold has posted strong gains against the dollar. XAU/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 has moved back above the $1300 level. XAU/USD has posted modest losses in the North American session.

 

XAU/USD Fundamentals

*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 [4]

Currency Analyst at Market Pulse [5]
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.
Kenny Fisher

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