Gold Flat Ahead of US Jobless Claims Release

Gold is flat on Wednesday, as the spot price stands at $1201.10 in the European session. On the release front, there are two key releases – ADP Nonfarm Employment Change and ISM Non-Manufacturing PMI.

Gold prices have taken traders on a roller coaster ride early in the week. On Sunday, gold dropped sharply after Swiss voters rejected a proposal to boost the Swiss National Bank’s gold reserves. Had the motion passed, the SNB would have been required to purchase some 1500 metric tons of gold over five years. Gold prices sank to $1142 per ounce early on Monday, but reversed directions and has posted huge gains, climbing close to 5% on the day. Still, the long-term range for gold remains bearish, as the US economy strengthens and the markets prepare for a rate hike in 2015.

The US manufacturing sector continues to expand, as ISM Manufacturing PMI remained strong in November. The index came in at 58.7 points, close to the previous release of 59.0 points, which marked a three-year high. The positive US manufacturing data stands in sharp contrast to the situation in the Eurozone and China. In the Eurozone, manufacturing PMIs in France, Germany and Italy contracted in November. In China, the world’s second largest economy, Manufacturing PMI edged down to 50.3 points, down from the previous reading of 50.8 points.

XAU/USD for Wednesday, December 3, 2014

XAU/USD December 3 at 11:55 GMT

XAU/USD 1201.10 H: 1208.41 L: 1194.14

 

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1156 1175 1200 1215 1240 1255

 

  • XAU/USD has shown little movement in the Asian and European sessions. The pair continues to trade close to the key 1200 line.
  • 1200 is fluid and could see more action during the day. It is currently a weak support level. 1175 is stronger.
  • 1215 is an immediate resistance line. 1240 is next.
  • Current range: 1200 to 1215.

Further levels in both directions:

  • Below: 1200, 1175, 1156, 1130 and 1111
  • Above: 1215, 1240, 1255 and 1275

 

OANDA’s Open Positions Ratio

XAU/USD ratio is pointing to gains in long positions on Wednesday. This is consistent with the pair’s movement, as gold has posted very small gains. The ratio has a majority of long positions, indicative of trader bias towards gold moving to higher gold.

XAU/USD Fundamentals

  • 13:15 US ADP Nonfarm Employment Change. Estimate 223K.
  • 13:30 US Revised Nonfarm Productivity. Estimate 2.3%.
  • 13:30 US Revised Unit Labor Costs. Estimate 0.3%.
  • 14:45 US Final Services PMI. Estimate 56.3 points.
  • 15:00 ISM Non-Manufacturing PMI. Estimate 57.5 points.
  • 15:30 US Crude Oil Inventories. Estimate 1.1M.
  • 17:30 US FOMC Member Charles Plosser Speaks.
  • 19:00 US Beige Book.
  • 19:00 US FOMC Member Lael Brainard Speaks.

*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

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.