Gold prices are steady on Monday, as the spot price stands at $1233.77 per ounce in the European session. The metal had an awful week, shedding about 3% against the surging US dollar. In economic news, there are no major US releases on Monday. The week started out on a positive note, as Empire State Manufacturing Index jumped to 27.5 points, well above expectations.
US numbers wrapped up last week on a high note. Core Retail Sales improved to 0.3%, edging above the estimate of 0.2%. Retail Sales posted a nice gain of 0.6%, well above the estimate of 0.3%. There was excellent news from the UoM Consumer Sentiment, which bounced back from a weak reading in July and improved to 84.6 points, its best showing since November 2012. The forecast stood at 83.2 points. These indicators point to an increase in consumer confidence and spending, which underscore a deepening economic recovery.
US employment data disappointed on Thursday. Unemployment Claims rose to 315 thousand, the largest number of claims in 10 weeks. The reading was much higher than the estimate of 306 thousand. This follows soft numbers from JOLTS Job Openings and a dismal Nonfarm Payrolls last week. The troubling job numbers are unlikely to affect the Fed’s plan to continue trimming QE later this week, but a soft labor market could postpone plans to raise interest rates by mid-2015.
XAU/USD for Monday, September 15, 2014
XAU/USD September 15 at 12:05 GMT
XAU/USD 1233.77 H: 1238.55 L:1227.83
- XAU/USD edged higher in the Asian session. The pair is almost unchanged in European trade.
- 1210 is an immediate support line. 1186 is stronger.
- 1240 is a weak resistance line. 1252 is next.
- Current range: 1210 to 1240.
Further levels in both directions:
- Below: 1210, 1186, 1156 and 1111
- Above: 1240, 1252, 1275, 1300, and 1315
OANDA’s Open Positions Ratio
XAU/USD ratio is almost unchanged on Monday. This is not consistent with the movement we’re seeing from the pair, as gold has posted small gains. The ratio has a substantial majority of long positions, indicative of trader bias towards gold gaining ground against the dollar.
- 12:30 US Empire State Manufacturing Index. Estimate 16.4 points. Actual 27.5 points.
- 13:15 US Capacity Utilization Rate. Estimate 79.3%.
- 13:15 US Industrial Production. Estimate 0.4%.
*Key releases are highlighted in bold
*All release times are GMT