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XAU/USD – Gold Edges Lower, Markets Eye Jobless Claims, Fed Minutes

Gold continues to have an uneventful week. In Tuesday’s North American session, the metal is trading at $1212.95. In economic news, Existing Home Sales jumped to 5.60 million, well above the forecast of 5.47 million. As well, the Richmond Manufacturing Index improved to 4 points, beating the estimate of 1 point. Wednesday will be much busier, with a host of key releases in the US, highlighted by Core Retail Sales and the FOMC meeting minutes and Crude Oil Inventories.

Gold Recovering After USD Cools Down [1]

The US dollar has posted broad gains since the US election on November 8, and gold prices have dropped some 5.6 percent in that period. With a rate hike in December a near-certainty, sentiment towards the dollar should remain high and gold prices could drop below the $1200 level. However, with a new government taking over the reins, what will happen in early 2017 is a big question mark, and the uncertainty swirling around Trump’s economic agenda could help the safe-haven metal lick its wounds and move higher once Trump takes office. Trump’s election promises of more spending and less taxes have been vague and we will have to wait for the new Trump administration to unveil a detailed economic platform. The Federal Reserve is in favor of gradual rate hikes next year, but this plan is based on the assumption that the US economy will continue to strengthen. In testimony before a congressional committee last week, Fed chair Janet Yellen acknowledged the uncertainty created by Trump’s victory and said that the Fed might have to adjust its outlook, based on the new administration’s economic policies.

XAU/USD Fundamentals

Tuesday (November 22)

Wednesday (November 23)

*All release times are EST

*Key events are in bold

XAU/USD for Tuesday, November 22, 2016

XAU/USD November 22 at 12:20 EST

Open: 1206.23 High: 1217.77 Low: 1206.21 Close: 1212.95

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1146 1174 1205 1223 1245 1279

Further levels in both directions:

OANDA’s Open Positions Ratio

XAU/USD ratio is showing slight gains in long positions. Currently, long positions have a substantial majority (81%). This is indicative of trader bias towards XAU/USD reversing directions and moving to higher levels.

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 [5]

Market Analyst at OANDA [6]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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