Gold is steady on Tuesday, as the spot price stands at $1307.47 late in the European session. On the release front, it’s another quiet day, highlighted by CB Consumer Confidence. The markets are expecting another strong showing from the June release.
Gold prices have not showed much movement so far this week. Many investors remain on the sidelines, waiting for three key events on Wednesday which could move the markets. The Federal Reserve will release a policy statement and we’ll get a look at Advance GDP and the ADP Nonfarm Payrolls. These events could shake up XAU/USD.
Gold prices are sensitive to geopolitical events, and there are two current hotspots that could affect prices in a hurry if the current situation deteriorates. In the Ukraine, tensions remain high after the downing of a Malaysian jetliner, and sporadic fighting continues between pro-Russian separatists and Ukrainian forces. European countries are expected to slap Russia with further sanctions. The second trouble spot is in Gaza, as fighting has raged between Hamas and Israel for over three week. The US has intensified efforts to halt the violence, but numerous ceasefires have been declared and broken.
XAU/USD for Tuesday, July 29, 2014
XAU/USD July 29 at 11:45 GMT
XAU/USD 1307.47 H: 1312.25 L: 1303.80
- XAU/USD continues to trade quietly. The pair was flat in the Asian session and has edged higher in European trading.
- 1315 is an immediate resistance line. 1331 is next.
- 1300 continues as a weak support line. 1275 is stronger.
- Current range: 1300 to 1315.
Further levels in both directions:
- Below: 1300, 1275, 1252 and 1240
- Above: 1315, 1331, 1345 and 1366
OANDA’s Open Positions Ratio
XAU/USD ratio is almost unchanged on Tuesday. This is consistent with the pair’s movement, as the pair has shown little movement. The ratio has a majority of long positions, indicative of trader bias towards gold prices moving upwards.
- 13:00 US S&P/CS Composite-20 HPI. Estimate 9.8%.
- 14:00 US CB Consumer Confidence. Estimate 85.5 points.
*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.