Gold Prices Steady Ahead of US Consumer Confidence Report

Gold is steady on Friday, as the metal is trading at a spot price of $1227.06. In the US, today’s highlight is Preliminary UoM Consumer Sentiment. The markets are expecting a strong reading, with an estimate of 98.2 points.

In the US, retail sales and jobless numbers were dismal on Thursday. Core Retail Sales declined by 0.9%, while Retail Sales dropped by 0.8%. Both were well off their estimates of -0.4%. There was no relief from unemployment claims, which jumped to 304 thousand, compared to 284 thousand in the previous reading. The markets had expected a stronger reading of 282 thousand.

European finance ministers met in Brussels on Wednesday, but were unable to bridge the gap between Greece and its creditors. The bailout agreement expires at the end of February, and the next bailout payment of about EUR 7 billion is on hold as Greece has declared it will not abide by the austerity steps which are required to receive the funds. Greece is looking for bridge financing until a new deal can be reached, but Germany and the troika have balked at rewriting the agreement. The finance ministers will reconvene on Monday. If some agreement can be reached, the euro could get a boost.

XAU/USD for Friday, February 13, 2015

XAU/USD February 13 at 9:55 GMT

XAU/USD 1227.06 H: 1231.25 L: 1222.91

 

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1175 1200 1215 1240 1255 1275

 

  • XAU/USD showed slight gains in the Asian session. The pair is unchanged in European trade.
  • 1240 remains an immediate resistance line.
  • 1215 is the next support level.
  • Current range: 1215 to 1240

Further levels in both directions:

  • Below: 1215, 1200, 1175 and 1154
  • Above: 1240, 1255, 1275, 1300 and 1322

 

OANDA’s Open Positions Ratio

XAU/USD ratio is pointing to gains in short positions on Friday, reversing the direction seen a day earlier. This is not consistent with the pair’s movement, as gold has posted small gains. The ratio has a majority of long positions, indicating trader bias towards gold moving to higher ground.

XAU/USD Fundamentals

  • 13:30 US Import Prices. Estimate -3.1%.
  • 15:00 US Preliminary UoM Consumer Sentiment. Estimate 98.2 points.
  • 15:00 US Preliminary UoM Consumer Inflation Expectations.

*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.