Gold is almost unchanged in the Monday session. In North American trade, the spot price for one ounce of gold is $1223.49, up 0.02% on the day. There are no U.S. indicators on the schedule, so traders can expect gold to remain subdued on Monday.
Global equity markets have seen plenty of volatility in the past few weeks, but gold has failed to take advantage, despite its status as a safe-haven asset. Nervous investors have put their faith in the U.S dollar rather than gold, although that could change if the U.S economic conditions weaken. Although U.S numbers have been strong, quarterly GDP readings have been falling throughout 2018, and analysts expect the downward trend to continue into 2019. This has led to speculation that the Federal Reserve could ease up on its interest rate hikes next year. Only a few weeks ago, there were expectations that the Fed might raise rates each quarter in 2019, but the mood has become more cautious. The U.S.-China trade war has caused a slowdown both economies, and President Trump’s $1.5 trillion tax cut has boosted the economy, but its effect on the economy is fading. A slowdown in the U.S economy would further exacerbate difficult conditions for the global economy, which is already feeling the effects of the global trade war.
Investors are hoping for a breakthrough at the G-2o summit in Argentina, which begins on Friday. President Trump will meet with Chinese President Xi Jinping, and the stakes could not be higher. Last week, White House advisor Larry Kudlow warned that the summit could be the scene of a direct confrontation between the parties. However, President Trump has a knack of reaching agreements with his adversaries despite hostile rhetoric, so it’s entirely possible that the parties will agree to keep talking, which could lift the moods of investors and send gold prices lower.
Monday (November 26)
- There are no U.S. releases on the schedule
*All release times are EST
*Key events are in bold
XAU/USD for Monday, November 26, 2018
XAU/USD November 26 at 11:30 EST
Open: 1223.14 High: 1228.07 Low: 1223.32 Close: 1223.38
XAU/USD was flat in the Asian session. The pair posted gains in European trade but then retracted. XAU/USD has posted small losses in North American trade
- 1220 is providing support
- 1236 is the next resistance line
- Current range: 1220 to 1236
Further levels in both directions:
- Below: 1220, 1204, 1170 and 1146
- Above: 1236, 1261 and 1284
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.