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Gold continues to have quiet week

It’s been an uneventful week for gold and that trend has continued in the Thursday session. In North American trade, the spot price for one ounce of gold is $1292.12, down 0.11% on the day. In economic news, unemployment claims dropped to 213 thousand, below the forecast of 219 thousand. This marked a 5-week low. On the manufacturing front, the Philly Fed Manufacturing Index jumped to 17.0, crushing the estimate of 9.7 points. On Friday, the U.S. releases UoM Consumer Sentiment.

The Federal Reserve is always under the watchful eye of investors, but the quarterly Beige Book release usually falls under the radar. However, the U.S government shutdown has disrupted the flow of government economic numbers, so the Beige Book for Q4, released on Wednesday, has received more than the usual scrutiny. The report found that businesses across the U.S had become less optimistic, due to higher interest rates, swings in the financial markets and global trade tensions. At the same time, most of the regional Feds noted that growth in their region was “modest to moderate”. The report reiterates the recent dovish stance we are seeing from the Federal Reserve, which has sent strong signals to the markets that rate hikes will likely be on hold for the near future.

Strong earnings from BoA and Goldman are driving risk appetite [1]

May back in Brexit talks after dramatic 48 hours [2]

Risk appetite slips, Brexit, U.S trade and government shutdown in focus [3]

XAU/USD Fundamentals

Thursday (January 17)

Friday (January 18)

*All release times are EST

*Key events are in bold

XAU/USD for Thursday, January 17, 2019

XAU/USD January 17 at 11:25 EST

 

 

Open: 1293.66 High: 1295.43 Low: 1288.85 Close: 1292.31

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1236 1261 1284 1306 1326 1355

XAU/USD showed limited movement in the Asian session. In European trade, the pair edged higher but then gave up these gains. XAU/USD has posted considerable gains in the 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 [7]

Currency Analyst at Market Pulse [8]
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.