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Gold slightly higher as durable goods orders slide

Gold has posted slight gains on Tuesday. In North American trade, the spot price for one ounce of gold is $1290.38, up 0.20% on the day. On the release front, Durable Goods Orders plunged 1.6%, a sharper decline than the estimate of -1.1%. Core Durable Goods Orders posted a weak gain of 0.1%, shy of the estimate of 0.3%. On Wednesday, the U.S. releases ISM Non-Manufacturing PMI and ADP nonfarm payrolls.

The U.S. economy remains strong, but this week’s key numbers have been anything but impressive. The weak durable goods orders data comes on the heels of soft retail sales numbers for March. Retail sales declined by 0.2%, shy of the estimate of +0.3%. Core retail sales declined by 0.4%, a sharp drop from the 0.9% gain a month earlier. Both indicators posted a second decline in three months, which is bound to raise concerns about the strength of the economy. There are concerns that the economy could be slowing down – growth for the first quarter could be as low as 0.8% annualized, compared to 2.2% in the fourth quarter.

Gold started the week with losses, as positive news out of China raised risk appetite and made gold less attractive. Chinese Caixin Manufacturing PMI improved to 50.8, easily beating the estimate of 50.1 points. Investors cheered as the indicator climbed to an 8-month high, after three successive readings in contraction territory. The Chinese economy has been hit hard by the trade war with the U.S., and a piece of good news sparked strong gains on the equity markets and sent gold prices lower.

It’s all about China [1]

Safe-haven currencies rally as risk appetite takes a break [2]

XAU/USD Fundamentals

Tuesday (April 2)

Wednesday (April 3)

*All release times are DST

*Key events are in bold

XAU/USD for Tuesday, April 2, 2019

XAU/USD April 2 at 12:15 DST

Open: 1287.74 High: 1291.93 Low: 1258.37 Close: 1290.38

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1243 1261 1284 1306 1326 1344

XAU/USD showed limited movement in the Asian session. The pair edged higher in European trade and is steady 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 [6]

Market Analyst at OANDA [7]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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