Gold prices are trading just above the $1300 level as we begin the new trading week. On the release front, today’s sole release is Pending Home Sales. The markets are expecting a strong gain for the March release.
US consumers appear to be content, as the UoM Consumer Sentiment jumped to 84.1 points, beating the estimate of 83.2. It marked the indicator’s highest level since June. If this optimism continues and translates into increased consumer spending, this should bode well for the US economy.
Meanwhile, the US housing sector continues to sputter. New Home Sales was a disaster, as the key indicator plunged to 384 thousand in March, down from 440 thousand in the previous release. The weak reading was nowhere near the estimate of 455 thousand, and marked an eight-month low for the key housing indicator. Earlier in the week, Existing Home Sales showed a slight drop in March, although the indicator did manage to beat the forecast. The markets are expecting better news from Pending Home Sales on Monday, with an estimate of 1.0%.
XAU/USD for Monday, April 28, 2014
XAU/USD April 28 at 11:15 GMT
XAU/USD 1303.31 H: 1306.47 L: 1301.60
- XAU/USD is steady in Monday trade.
- 1300 is providing weak support. This is followed by a support level at 1273.
- 1315 is the next resistance role.
- Current range: 1300 to 1315
Further levels in both directions:
- Below: 1300, 1273, 1260, 1252 and 1241
- Above: 1315, 1330, 1350 and 1388
OANDA’s Open Positions Ratio
XAU/USD ratio is pointing to gains in short positions in Monday trade. The ratio has a substantial majority of long positions, reflecting a strong trader bias towards gold posting gains against the US dollar.
Gold is trading slightly above the important $1300 level as we start the new trading week.
- 14:00 US Pending Home Sales. Estimate 1.0%.
*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.