Gold has posted slight gains in the Monday session. In North American trade, the spot price for an ounce of gold is $1335.86, up 0.19% on the day. In economic news, there are no US events on the schedule. On Tuesday, the US releases PPI, a key inflation indicator.
The tit-for tat tariff war between the US and China has roiled the stock markets in recent weeks, and gold has received a boost, as fears of a global trade war have seen investors flock to the base metal, which is a traditional safe-haven asset in during political and economic uncertainty. However, US policymakers made an effort to lower the flames on the weekend, and Treasury Secretary Steve Mnuchin said that he doesn’t “expect there will be a trade war.” The markets will be keeping a close eye on China’s Boao Forum, known as the ‘Asian Davos’, where Chinese President Xi Jinping will make a major address on Tuesday. If he echoes the tough and uncompromising stance which China has taken until now, market jitters could be revived and gold prices could move upwards.
US nonfarm payrolls, one of the most critical economic reports, was a major disappointment on Friday. The economy added just 103 thousand jobs, well off the forecast of 188 thousand. Still, the markets do not appear overly concerned, as payroll reports often sag in March. On a more positive note, wage growth improved to 0.3%, up from 0.1% a month earlier. This release matched the estimate. The improvement is likely to reinforce sentiment that the Fed could press the rate trigger four times in 2018, which could mean headwinds for gold later in the year.
Monday (April 9)
- There are no US events on the schedule
Tuesday (April 10)
- 8:30 US PPI. Estimate 0.1%
- 8:30 US Core PPI. Estimate 0.2%
*All release times are DST
*Key events are in bold
XAU/USD for Monday, April 9, 2018
XAU/USD April 9 at 13:00 EST
Open: 1332.83 High: 1336.69 Low: 1326.78 Close: 1335.86
- XAU/USD was flat in the Asian session. The pair posted losses in European trade but has reversed directions and moved upwards in North American trade
- 1307 is providing support
- 1337 is under pressure in resistance. It could break in the North American session
- Current range: 1307 to 1337
Further levels in both directions:
- Below: 1307, 1285 and 1260
- Above: 1337, 1375, 1416 and 1433
OANDA’s Open Positions Ratio
In the Monday session, XAU/USD ratio is showing short positions with a majority (54%). This is indicative of slight trader bias towards XAU/USD reversing directions and moving to lower ground.