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Gold Dips on Positive Jobless Claims Report

Gold lost ground on Thursday, losing close to 1% of its value against the US dollar. On Friday, the metal’s spot price stands at $1231.80 per ounce in the European session. Although Unemployment Claims rose to 284,000, the four-week average was down sharply. This improvement helped the dollar gain ground against gold. On Friday, the sole release on the schedule is New Home Sales. The markets are expecting the indicator to soften this month, with an estimate of 473 thousand.

US Unemployment Claims rose to 284 thousand last week, much higher than the previous reading of 264 thousand. However, the markets were not too concerned, as the four-week average, which is less volatile than the weekly release, dipped to 281,000, a 14-year low. Meanwhile, weak inflation levels continue to point to slack in the economy. On Wednesday, this trend continued with soft consumer inflation numbers. CPI rose to +0.1%, an improvement from the previous reading of -0.2%. The estimate stood at 0.0%, so the markets clearly did not have high expectations. It was a similar story from Core CPI, which also posted a 0.1% gain, up from 0.0% a month earlier. This was shy of the forecast of 0.2% but still within expectations.

On Friday, we’ll get a look at New Home Sales. The indicator shined last month, jumping to 504 thousand, up from 412 thousand in the previous reading. The markets are expecting a downturn in the upcoming release, with an estimate of just 473 thousand. Will the indicator beat this estimate? Earlier in the week, Existing Home Sales sparkled at 5.29 million, its best showing in a year.


XAU/USD for Friday, October 24, 2014

XAU/USD October 24 at 9:25 GMT

XAU/USD 1231.80 H: 1234.18 L: 1229.01


XAU/USD Technical

S3 S2 S1 R1 R2 R3
1180 1200 1215 1240 1252 1275


Further levels in both directions:


OANDA’s Open Positions Ratio

XAU/USD ratio is pointing to gains in long positions on Friday. This is not consistent with the pair’s movement, as XAU/USD is almost unchanged. The ratio has a majority of long positions, indicative of trader sentiment in favor of gold breaking out and moving higher.


XAU/USD Fundamentals

*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 [4]

Market Analyst at OANDA [5]
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 Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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