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Gold Steady as ISM Manufacturing PMI Meets Expectations

Gold has posted slight gains in the Monday session. In North American trade, gold is trading at $1252.81 per ounce. On the release front, there is just one major release on the schedule. ISM Manufacturing PMI dropped to 57.2, matching the forecast.

Donald Trump’s young presidency has been turbulent, with Trump’s controversial statements and actions making headlines almost daily. The battles with the media continue, an economic policy remains a mystery, and Trump suffered a major setback as he couldn’t even muster a vote over his healthcare bill. Despite these hiccups, the US economy hasn’t missed a beat in 2017. The CB consumer confidence report soared to 125.6 in March, and strong consumer confidence levels should translate into increased consumer spending. GDP for the fourth quarter was revised to 2.1%, up from 1.9% in the previous GDP report. This points to strong growth for the economy,

The discussions around the monetary policy tables are not whether the Fed will raise rates, but rather how many times will the Fed press the rate trigger in 2017. The Fed has forecast two more hikes this year, but the markets are looking for three hikes, and the US dollar took a hit last week as the markets were disappointed with the Fed’s dovish rate statement. The Fed will release the minutes of its March meeting on Wednesday, and the markets will be looking for clues as to the timing of a possible rate hike. If the minutes are dovish in tone, gold could head lower.

XAU/USD Fundamentals

Monday (April 3)

*All release times are GMT

*Key events are in bold

XAU/USD for Monday, April 3, 2017

XAU/USD April 3 at 11:35 EST

Open: 1248.20 High: 1253.74 Low: 1244.44 Close: 1252.81

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1174 1199 1232 1260 1285 1307

Further levels in both directions:

OANDA’s Open Positions Ratio

In the Monday session, XAU/USD ratio is showing long positions with a majority (58%), indicative of trader bias towards XAU/USD continuing to move higher.

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 [4]

Currency Analyst at Market Pulse [5]
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.
Kenny Fisher

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