Gold is steady on Wednesday, following gains a day earlier. In the European session, the metal is trading at a spot price of $1292.10. In the US, the markets are keeping a close eye on the FOMC Statement, which will be released later in the day. The only other event is Crude Oil Inventories, with the markets expecting a strong downturn in the upcoming report.
The Federal Reserve will be in the spotlight on Wednesday, with the release of a policy statement at the end of a two-day meeting. The Fed is expected to continue to counsel patience regarding an interest rate hike, and persistently weak inflation means the Fed can take its time before having to make a monetary move. The markets will be combing through the statement and any clues as to the timing of rate hike could push gold prices lower.
Tuesday was a busy day in the US. Durable Good reports disappointed, as Durable Goods Orders plunged 3.4%, marking a 4-month low. There was no relief from Core Durable Goods Orders, which declined by 0.8%, its fifth drop in six readings. The markets had expected gains from both indicators. There was much better news later in the day, as CB Consumer Confidence jumped to 102.9 points, crushing the estimate of 95.3 points. New Home Sales followed suit, rising to 481 thousand, well above the forecast of 452 thousand.
XAU/USD for Wednesday, January 28, 2015
XAU/USD January 28 at 12:30 GMT
XAU/USD 1292.10 H: 1293.63 L: 1285.95
- XAU/USD is showing limited movement on Wednesday.
- On the downside, 1275 is an immediate support line. 1255 is next.
- The round number of 1300 is a weak resistance line. 1322 is stronger.
- Current range: 1275 to 1300
Further levels in both directions:
- Below: 1275, 1255, 1240, 1215 and 1200
- Above: 1300, 1322, 1345 and 1375
OANDA’s Open Positions Ratio
XAU/USD ratio is pointing to gains in short positions on Wednesday. This is consistent with the pair’s movement, as gold has posted small losses. The ratio has a majority of long positions, indicating trader bias towards gold moving to higher ground.
- 15:30 US Crude Oil Inventories. Estimate 4.2M.
- 19:00 US FOMC Statement.
- 19:00 US Federal Funds Rate. Estimate <0.25%
*Key releases are highlighted in bold
*All release times are GMT
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