Gold gains ground at start of week

Gold has gained ground in the Monday session. In North American trade, the spot price for one ounce of gold is $1260.98 up 0.44% on the day. On the economic front, there are no key events on the schedule. On Tuesday, the U.S releases JOLTS Jobs Openings.

U.S employment data was a mix on Friday, as job growth remained above the 200-thousand level, but wage growth faltered. Nonfarm payrolls dropped to 213 thousand, but this beat the estimate of 195 thousand. Average Hourly Earnings edged lower to 0.2%, shy of the estimate of 0.3%. There was a surprise as the unemployment rate climbed to 4.0%, above the forecast of 3.8%. The data demonstrates that the U.S labor market remains strong, and the economy continues to perform well. The markets remain bullish on U.S growth, despite uncertainty in Europe and elsewhere, as well as the growing threat of an all-out trade war between the U.S and China.

Gold is sensitive to interest rate moves, but the base metal shrugged after the release of the FOMC minutes on Thursday. The minutes were somewhat dovish in tone, as policymakers gave a thumbs-up to the strong U.S economy, but expressed concern about developments abroad. These include growing trade tensions with U.S trading partners, as well as political and economic developments in Europe. The minutes also reiterated the Fed’s support for a “gradual” raise in interest rates. The markets are circling the September policy meeting for the next rate hike, with the CME Group setting the odds of a quarter-point hike at 80%.

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XAU/USD Fundamentals

Monday (July 9)

  • 15:00 US Consumer Credit. Estimate 12.2B

Tuesday (July 10)

  • 10:00 US JOLTS Job Openings. Estimate 6.88M

*All release times are DST

*Key events are in bold

 

XAU/USD for Monday, July 9, 2018

XAU/USD July 9 at 11:55 DST

Open: 1255.26 High: 1266.01 Low: 1255.01 Close: 1260.83

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1204 1220 1236 1260 1285 1307

XAU/USD posted small gains in the Asian session and recorded stronger gains in European trade. XAU/USD  has posted slight gains in the North American session

  • 1236 is providing support
  • 1260 is a weak resistance line
  • Current range: 1236 to 1260

Further levels in both directions:

  • Below: 1236, 1220, 1204
  • Above: 1260, 1285, 1307 and 1322

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.