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Gold Hits Hits $1300 after Barcelona Attack

Gold prices continue to push higher. In the Friday session, gold punched past the $1300 level, before retracting. In North American trade, spot gold is trading at $1287.15, down 0.04% on the day. On the release front, it’s a quiet end to the week, with just one key event on the schedule. UoM Consumer Sentiment improved to 97.6, beating the estimate of 94.0 points.

Geopolitical crises often have a strong impact on gold, which, as a safe haven asset, tends to rise when risk appetite is down. This was the case this week, with gold showing considerable volatility. Early in the  week, gold prices dropped, as tensions between the US and North Korea eased. The crisis reached a fever pitch last week, as the saber-rattling between Washington and Pyongyang sent gold prices higher. Gold finds itself again in demand following a deadly car-ramming attack in Barcelona, Spain on Thursday. The terror attack killed 12 and wounded dozens, and the flight from risk towards gold sent the metal above the symbolic $1300 level on Friday, for the first time since November 2016.

In the US, political risk continues to rise, which is weighing on the US dollar. President Trump’s administration continues to spend most of its focus and energy on damage control, and has failed to pass any major legislation through Congress, even though the Republicans control both the House and the Senate. The latest fiasco for Trump has been the alt-right protest in Charlottesville, where one protester was killed by a suspected white supremacist. Trump’s belated condemnation of white supremacists and his insistence on blaming the violence on both the white supremacists and the counter-protesters has drawn wall-to-wall criticism from both Democrat and Republican lawmakers. Trump remains defiant and continues to attack his critics, but the events around Charlottesville have only served to tarnish his image and raised growing concerns about his presidency.


XAU/USD Fundamentals

Friday (August 18)

*All release times are EDT

*Key events are in bold

XAU/USD for Friday, August 18, 2017

XAU/USD August 18 at 12:45 EST

Open: 1287.90 High: 1300.92 Low: 1286.00 Close: 1287.15


XAU/USD Technical

S3 S2 S1 R1 R2 R3
1232 1260 1285 1307 1337 1367

Further levels in both directions:

OANDA’s Open Positions Ratio

In the Friday session, XAU/USD ratio is showing long positions with a majority (53%), indicative of a slight trade bias towards XAU/USD continuing to post gains.

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]

Market Analyst at OANDA [5]
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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