Gold Flat Ahead of US Construction, Consumer Confidence Data

Gold is almost unchanged on Friday, as the spot price stands at $1237.89 per ounce in the European session. In the US, it’s another busy day, with the release of Building Permits and the UoM Consumer Sentiment. As well, Federal Reserve Chair Janet Yellen will deliver remarks at an event in Boston.

Earlier in the week, US retail sales and inflation numbers sagged, and gold responded by pushing past resistance at $1240. Core Retail Sales dipped 0.2%, its first decline since April 2013. It was a similar story with Core Retail Sales, which posted a decline of 0.3%, its first loss since January. This points to a decrease in consumer spending, a key component of economic growth. Meanwhile, PPI fell by 0.1%, after a reading of 0.0% a month earlier. All three events missed their estimates.

There was better news on Thursday, as US Unemployment Claims dropped to 264 thousand, marking a 14 -year low. The estimate stood at 286 thousand. Manufacturing numbers were a mix, as Industrial Production gained 1.0%, its best showing since November. The Philly Fed Manufacturing Index dipped to 20.7 points, but this beat the estimate of 19.9 points.

XAU/USD for Friday, October 17, 2014

XAU/USD October 17 at 9:35 GMT

XAU/USD 1238.95 H: 1241.72 L: 1237.89

XAU/USD Technical

• Gold is showing limited movement in the Asian and European sessions.
• On the upside, 1240 remains under strong pressure. This line was breached late in the Asian session.
• 1215 is an immediate support level.
• 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 higher.

XAU/USD Fundamentals

• 12:30 US Building Permits. Estimate 1.04M.
• 12:30 US Fed Chair Janet Yellen Speaks.
• 12:30 US Housing Starts. Estimate 1.02M.
• 13:55 US Preliminary UoM Consumer Sentiment. Estimate 84.3 points.
• 13:55 US Preliminary UoM Inflation Expectations.

*Key releases are highlighted in bold

*All release times are GMT

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