Streaking Gold Pushes Towards $1300

Gold continues to move higher during Christmas week, and has climbed to its highest level since the end of November. In Thursday’s North American session, the spot price for an ounce of gold is $1294.44, up 0.56% on the day. On the release front, today’s key indicator was unemployment claims, which remained unchanged at 245 thousand. This was higher than the estimate of 240 thousand.

The US dollar is broadly lower on Thursday, and gold has taken full advantage, posting considerable gains. Gold has jumped 3.0% percent since December 11, and is within striking distance of the symbolic $1300 level, which was last breached in late October.

In the U.S, the first key indicators of the holiday week were mixed. CB Consumer Confidence slowed to 122.2, well off the estimate of 128.2 points. Pending Home Sales posted a small gain of 0.2%, beating the estimate of -0.4%. Housing numbers continue to beat expectations. Last week, Housing Starts came in at 1.30 million, beating the forecast of 1.25 million. On Tuesday, New Home Sales sparkled, with a gain of 733 thousand. This easily beat the estimate of 654 thousand, and was the highest reading since September 2007.

 

XAU/USD Fundamentals

Thursday (December 28)

  • 8:30 US Unemployment Claims. Estimate 240K. Actual 245K
  • 8:30 US Goods Trade Balance. Estimate -67.7B. Actual -69.7B
  • 8:30 US Preliminary Wholesale Inventories. Estimate 0.4%. Actual 0.7%
  • 9:45 US Chicago PMI. Estimate 62.2. Actual 67.6
  • 10:30 US Natural Gas Storage. Estimate -115B. Actual -112B
  • 11:00 US Crude Oil Inventories. Estimate -3.9M. Actual -4.6M

*All release times are GMT

*Key events are in bold

XAU/USD for Thursday, December 28, 2017

XAU/USD December 28 at 12:15 EST

Open: 1287.21 High: 1295.19 Low: 1287.06 Close: 1294.03

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1240 1260 1285 1307 1337 1375
  • XAU/USD posted slight gains in the Asian and European sessions. The pair is steady in North American trade
  • 1285 is providing support
  • 1307 is the next resistance line
  • Current range: 1285 to 1307

Further levels in both directions:

  • Below: 1285, 1260, 1240 and 1213
  • Above: 1307, 1337 and 1375

OANDA’s Open Positions Ratio

XAU/USD ratio is showing movement towards short positions. Currently, long positions have a majority (60%), indicative of trader bias towards XAU/USD continuing to move to higher ground.

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.