Gold Shows Little Movement as Unemployment Claims Meets Expectations

Gold has shown little change on Friday, continuing the lack of activity we’ve seen throughout the week. In the European session, the spot price is at $1315.50 per ounce in the European session. On the release front, today’s highlight is Revised UoM Consumer Sentiment, with the markets expecting another strong reading in May.

On Friday, Ukraine signed an association agreement with the EU, which strengthens economic and political ties between Ukraine and the EU. Earlier in the year, the decision by the Ukrainian president not to sign the deal led to widespread demonstrations and the installation of a new government in Kiev. Predictably, Russia is upset about the trade deal and has warned about consequences if its economic interests are harmed as a result of the agreement. The situation remains tense in eastern Ukraine, and a flare-up in violence could rattle the markets and affect gold, which tends to gain ground on geopolitical instability.

XAU/USD displayed little response to US Unemployment Claims, which has not shown much movement in the month of June. The key indicator came in at 312 thousand, slightly better than the estimate of 314 thousand. Earlier in the week, GDP shocked the markets with a five-year low and durables softened as well. GDP dropped by 2.9%, much worse than the 1.8% loss expected by the markets. Core Durable Goods Orders declined by 0.1%, its first decline in five months. The estimate stood at 0.3%. Durable Goods Orders looked even worse, coming in at -1.0%, shy of the estimate of -0.1%.


XAU/USD for Friday, June 27, 2014

XAU/USD June 27 at 9:30 GMT

XAU/USD 1315.50 H: 1322.26 L: 1314.31


XAU/USD Technical

S3 S2 S1 R1 R2 R3
1275 1300 1315 1331 1354 1375


  • Gold edged higher late in the Asian session but has surrendered these gains in European trading.
  • On the downside, XAU/USD is testing 1315. This is followed by support at the round number of 1300.
  • 1331 is the next resistance line.
  • Current range: 1315 to 1331.

Further levels in both directions:

  • Below: 1315, 1300, 1275, 1260 and 1231
  • Above: 1331, 1354 and 1375 and 1417


OANDA’s Open Positions Ratio

XAU/USD ratio has pointed to gains in Friday trade. This is not reflected in the pair’s movement, as gold is almost unchanged. The ratio is made up of a majority of long positions, reflecting trader bias towards gold prices moving higher against the greenback.


XAU/USD Fundamentals

  • 13:55 US Revised UoM Consumer Sentiment. Estimate 82.2 points.
  • 13:55 US Revised UoM Inflation Expectations.

*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

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.