Gold prices are steady on Friday, as the metal is trading at a spot price of $1204.04. Gold is struggling, having lost over 2% of its value this week. Is the metal poised to break below the key 1200 line? On the release front, there are two key releases on the calendar – Unemployment Claims and the Philly Fed Manufacturing Index. The markets are expecting stronger readings from both indicators.
Is an agreement in sight between Greece and its creditors? Eurozone finance ministers were unable to draft an agreement on Monday, but the finance ministers will try again on Friday. Greece has requested an extension of the bailout, which expires next week. However, the details of the request are not clear, and the parties will likely conduct tough negotiations at the Friday meeting. The stakes are high, since if Greece does not receive bailout funds or bridge funding, Greece could be forced to leave the Eurozone and abandon the euro.
On Wednesday, the Federal Reserve released the minutes of its previous policy meeting. The minutes were decidedly dovish in nature, as Fed policymakers raised concerns that a mid-year rate hike could hurt the economic recovery. The Fed also said it was worried about the impact of global events on the US economy, such as the slowdown in China and the Greek financial crisis. With US inflation at low levels, the Fed is not in any rush to raise rates, so speculation of a mid-year rate may have been premature.
XAU/USD for Friday, February 20, 2015
XAU/USD February 20 at 11:20 GMT
XAU/USD 1204.20 H: 1209.84 L: 1201.78
- XAU/USD has shown limited movement in the Asian and European sessions.
- 1215 is a weak resistance line. 1240 is stronger.
- On the downside, 1200 is under pressure. Will the pair break below this key level during the day?
- Current range: 1200 to 1215
Further levels in both directions:
- Below: 1200, 1175, 1154 and 1131
- Above: 1215, 1240, 1255, 1275 and 1300
OANDA’s Open Positions Ratio
XAU/USD ratio is almost unchanged on Friday. This is not consistent with the pair’s limited movement. The ratio has a majority of long positions, indicating trader bias towards gold moving to higher ground.
- All Day – Eurogroup Meetings.
- 14:45 US Flash Manufacturing PMI. Estimate 53.7 points.
*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.