Gold starts week with losses

Gold has posted gains in the Monday session. In North American trade, the spot price for one ounce of gold is $1309.50, down 0.35% on the day. There are no economic releases on the schedule.

The Federal Reserve does not hold its policy meeting until mid-March, so investors will be left to focus on remarks from Fed Chair Jerome Powell and his colleagues. The Fed raised interest rates four times last year, but economic conditions are very different in 2019. The U.S-China trade war has dampened global growth and rocked the equity markets. With the U.S. unlikely to replicate the sparkling growth we saw in 2018, the Fed is projecting just two rate increases this year. The markets, however, are predicting no rate moves, and some analysts are even talking about the possibility of a rate cut late in 2019.

With the U.S. poised to impose further tariffs on China in early March, traders should be prepared for some movement from gold in February as investors keep a worried eye on developments. Risk appetite slipped late in the week after President Trump that he would not hold a meeting with President Xi prior to the tariff deadline, and this boosted gold prices. A third round of negotiations starts this week, with Treasury Secretary Mnuchin joining the talks later in the week. Investors are frustrated that there are no signs of progress, leading to concerns that the sides will not be able to reach a deal by March 2.

Will the US and China finally share their toys?

Trade talks, shutdown and Brexit eyed this week

King Dollar

XAU/USD Fundamentals

Monday (February 11)

  • 11:15 FOMC Member Bowman Speaks

Tuesday (February 12)

  • 10:00 US JOLTS Job Openings
  • 12:45 Fed Chair Powell Speaks

*All release times are EST

*Key events are in bold

XAU/USD for Monday, February 11, 2019

XAU/USD February 11 at 12:15 EST

Open: 1314.12 High: 1314.89 Low: 1303.76 Close: 1309.50

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1261 1284 1306 1326 1344 1365

XAU/USD posted slight losses in the Asian session and further losses in European trade. The pair has reversed directions in North American trade and posted small gains

  • 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.

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.