Gold has posted slight losses in the Wednesday session, erasing the gains seen on Tuesday. In North American trade, the spot price for one ounce of gold is $1312.33, down 0.21% on the day. In economic news, there was positive news as the trade deficit narrowed to $49.3 billion in November, down from the previous reading of $55.7 billion. This marked the lowest deficit in 5 months. On Thursday, the U.S. releases unemployment claims.
President Trump’s State of the Union address was a yawner as far as the markets were concerned, but there were some points of interests for investors. Trump spoke about the U.S-China trade war, reiterating that the U.S. would demand “real structural change” from China before a trade deal could be reached. American policymakers have long demanded that China desist from intellectual theft against U.S. companies, and with China experiencing a slowdown, the Chinese may have to make concessions or face further tariffs in March. A third round of negotiations between the sides is scheduled for this month, raising hopes that the U.S. will not impose further tariffs on China in early March. Trump also announced that he will meet North Korean leader Kim in late February, an event which could bolster risk appetite and weigh on gold prices.
Wednesday (February 6)
- 8:30 US Trade Balance. Estimate -54.0B. Actual -49.3B
- 10:30 US Crude Oil Inventories. Estimate 1.3M
- 13:01 US 10-year Bond Auction
- 18:05 US FOMC Member Quarles Speaks
- 19:00 Fed Chair Powell Speaks
Thursday (February 7)
- 8:30 US Unemployment Claims. Estimate 220K
*All release times are EST
*Key events are in bold
XAU/USD for Wednesday, February 6, 2019
XAU/USD February 6 at 11:00 EST
Open: 1315.18 High: 1315.87 Low: 1311.66 Close: 1312.33
XAU/USD showed limited movement in the Asian session. The pair posted small losses in the European session and is steady in North American trade
- 1306 is providing support
- 1326 is the next resistance line
- Current range: 1306 to 1326
Further levels in both directions:
- Below: 1306, 1284, 1261 and 1236
- Above: 1326, 1344 and 1365
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.