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Gold stems slide, investors eye CPI reports

After seven losing sessions, gold has finally rebounded on Tuesday and posted gains. In North American trade, the spot price for one ounce of gold is $1203.75, up 0.26% on the day. On the release front, there are no major releases out of the U.S. for a second straight day.

Gold prices remain under pressure. The base metal declined 1.9 percent last week, and is in red territory this week as well. Global stock markets have lost ground, as trouble spots such as U.S-China relations, Brexit and the Italian budget crisis have unnerved investors, but gold has failed to take advantage. As well, last week’s hawkish Fed rate statement has boosted the U.S dollar and conversely weighed on gold prices, as investors have snapped up U.S dollars. With key consumer inflation and spending reports coming up, on Wednesday and Thursday, traders should be prepared for some volatility from gold prices.

The Fed shows no signs of easing up on interest rate hikes, with Fed policymakers stating that interest rates will continue to rise until the “neutral rate” of between 2.5 percent and 3.5 percent is reached. This means we can expect rate hikes once a quarter in 2019, barring a sharp downturn in the economy. The policy of gradual increases is good news for the U.S dollar, and conversely bearish for gold prices, as higher interest rates mean that the greenback is more attractive to investors.


XAU/USD Fundamentals

Tuesday (November 13)

Wednesday (November 14)

*All release times are EST

*Key events are in bold


XAU/USD for Tuesday, November 13, 2018

XAU/USD November 13 at 11:35 DST

Open: 1200.63 High: 1205.31 Low: 1196.44 Close: 1203.73


XAU/USD Technical

S3 S2 S1 R1 R2 R3
1122 1146 1170 1204 1220 1236

XAU/USD posted gains in the Asian session but retracted in European trade. The pair has moved upwards in North American session

Further levels in both directions:

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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