Gold is calm on Tuesday, as the spot price stands at $1233.28 per ounce in the European session. The metal is trading at 3-week highs following last week’s dovish Fed minutes, which put the breaks on the dollar’s upward movement. There are no major US releases on Tuesday, but we’ll get a look at key retail sales and inflation numbers on Wednesday.
The US dollar has cooled down after last week’s FOMC minutes were unexpectedly dovish. In the minutes, the Fed poured some cold water on rising expectations of a rate hike, as a number of policymakers said that the Federal Reserve should take a more data-dependent approach regarding a rate hike. The Fed also voiced concern about the rising strength of the US dollar which could weigh on the recovery. On the weekend, FOMC member Stanley Fischer said that the Fed could slow tightening if global growth is weaker than expected.
US Unemployment Claims were unchanged last week, coming in at 287 thousand. This beat the estimate of 291 thousand. The indicator has now exceeded the forecast for four straight readings. Earlier in the week, JOLTS Job Openings climbed to 4.84 million, up from 4.67 million a month earlier. These numbers followed an excellent Nonfarm Payrolls report, as the US labor market continues to improve. With QE slated to end later this month, the focus will shift to the timetable for an interest rake hike.
XAU/USD for Tuesday, October 14, 2014
XAU/USD October 14 at 11:10 GMT
XAU/USD 1233.28 H: 1237.08 L: 1232.12
- Gold has been uneventful in the Asian and European sessions.
- 1215 is the next support level.
- On the upside 1240 is an immediate resistance level 1252 is next.
- Current range: 1215 to 1240.
Further levels in both directions:
- Below: 1215, 1186, 1156, 1136 and 1101
- Above: 1240, 1252, 1275 and 1300
OANDA’s Open Positions Ratio
XAU/USD ratio has a majority of long positions, indicative of trader sentiment in favor of gold breaking out and moving to higher levels.
- 11:30 US NFIB Small Business Index. Estimate 97.2 points.
*Key releases are highlighted in bold
*All release times are GMT
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