Gold Unchanged as Markets Eye US Job Data

Gold prices are unchanged on Friday, as the metal is trading at a spot price of $1266.92. Today’s highlight is US Nonfarm Employment Change. The markets are expecting a weak report for January, with an estimate of 236 thousand. The US will also release the unemployment rate, which is expected to remain at 5.6%.

In the US, this week’s employment readings have not impressed. ADP Non-Farm Employment Change was well off expectations, falling to 213 thousand. The estimate stood at 224 thousand. Unemployment Claims rose to 278 thousand last week, although this did beat the forecast of 287 thousand. If the official Nonfarm Employment Change does soften as is expected, the dollar could lose some ground.

The new Greek government has been talking tough about renegotiating its bailout agreement, much to the consternation of the troika and Germany. Greece has declared that it will not honor the current bailout agreement and has put a halt to the sale of major public assets to help pay back its debt. The ECB hit back on Wednesday, saying that it would no longer accept Greek government bonds as collateral for ECB loans. This will put pressure on Greek banks and serves as a warning that the ECB will not stand idly by as Greece tries to avoid its bailout obligations. The fireworks could continue next week, as German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras attend an EU meeting in Brussels next week.

XAU/USD for Friday, February 6, 2015

XAU/USD February 6 at 9:35 GMT

XAU/USD 1267.42 H: 1268.84 L: 1262.39

 

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1215 1240 1255 1275 1300 1322

 

  • XAU/USD has shown very little movement in the Asian or European sessions, as resistance at 1275 remains in place.
  • 1275 is a weak resistance line. 1300 is stronger.
  • 1255 is an immediate support level. 1240 is next.
  • Current range: 1255 to 1275

Further levels in both directions:

  • Below: 1255, 1240, 1215 and 1200
  • Above: 1275, 1300, 1322, 1345 and 1375

 

OANDA’s Open Positions Ratio

XAU/USD ratio is pointing to gains in short positions on Friday, reversing the trend seen a day earlier. 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.

XAU/USD Fundamentals

  • 13:30 US Nonfarm Employment Change. Estimate 236K.
  • 13:30 US Unemployment Rate. Estimate 5.6%.
  • 13:30 US Average Hourly Earnings. Estimate 0.3%.
  • 16:45 US FOMC Member Dennis Lockhart Speaks.
  • 20:00 US Consumer Credit. Estimate 15.1B.

*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.