Gold is trading quietly in the Wednesday session. In North American trade, the spot price for one ounce of gold is $1286.85, down 0.08% on the day. In economic news, ADP nonfarm payrolls disappointed, falling to a 3-month low. The indicator fell to 183 thousand, down from 213 thousand in the previous release. On Thursday, the U.S. releases unemployment claims.
It has been a rough March for gold, which has declined 2.0 percent. Gold is a traditional safe-haven asset, and stronger risk appetite is weighing on the base metal. Investors are confident that the U.S. and China will bury the hatchet and reach some agreement on trade and tariffs. The sides have completed four rounds of talks, and all signs are pointing to progress in the bitter trade war, which rocked the stock markets while propelling gold prices upwards. If there is a breakthrough in the talks, traders should be prepared for gold prices to drop sharply.
The focus will be on U.S. employment numbers for the remainder of the week, starting with ADP nonfarm payrolls on Wednesday. Analysts are expecting mixed numbers on Friday. Wage growth is expected to improve to 0.3%, but nonfarm payrolls are projected to slide to 185 thousand, after a strong gain of 304 thousand in the previous release. The unemployment rate has been at record lows, and is expected to dip to a sizzling 3.9% in the February report.
Wednesday (March 6)
- 8:15 US ADP Nonfarm Employment Change. Estimate 190K. Actual 183K
- 8:30 US Trade Balance. Estimate -57.8B. Actual -59.8B
- 10:30 US Crude Oil Inventories. Estimate 1.2M. Actual 7.1M
- 12:00 US FOMC Member Williams Speaks
- 14:00 US Beige Book
Thursday (March 7)
- 8:30 US Unemployment Claims. Estimate 225K
*All release times are EST
*Key events are in bold
XAU/USD for Wednesday, March 6, 2019
XAU/USD March 6 at 12:15 EST
Open: 1287.92 High: 1290.98 Low: 1283.71 Close: 1286.85
XAU/USD showed limited movement in the Asian session. The pair posted slight gains in European trade but then retracted. The pair has edged lower in North American trade but has recovered
- 1284 is providing support
- 1306 is the next resistance line
- Current range: 1284 to 1306
Further levels in both directions:
- Below: 1284, 1261 and 1243
- Above: 1306, 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.