Gold Flat Ahead Of U.S. Data
MarketPulse | Oct 17, 2014 06:04AM ET
Gold is almost unchanged on Friday, as the spot price stands at $1237.89 per ounce in the European session. In the US, it’s another busy day, with the release of Building Permits and the UoM Consumer Sentiment. As well, Federal Reserve Chair Janet Yellen will deliver remarks at an event in Boston.
Earlier in the week, US retail sales and inflation numbers sagged, and gold responded by pushing past resistance at $1240. Core Retail Sales dipped 0.2%, its first decline since April 2013. It was a similar story with Core Retail Sales, which posted a decline of 0.3%, its first loss since January. This points to a decrease in consumer spending, a key component of economic growth. Meanwhile, PPI fell by 0.1%, after a reading of 0.0% a month earlier. All three events missed their estimates.
There was better news on Thursday, as US Unemployment Claims dropped to 264 thousand, marking a 14 -year low. The estimate stood at 286 thousand. Manufacturing numbers were a mix, as Industrial Production gained 1.0%, its best showing since November. The Philly Fed Manufacturing Index dipped to 20.7 points, but this beat the estimate of 19.9 points.
- XAU/USD 1238.95 H: 1241.72 L: 1237.89
XAU/USD Technicals
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1156 | 1186 | 1215 | 1240 | 1252 | 1275 |
- Gold is showing limited movement in the Asian and European sessions.
- On the upside, 1240 remains under strong pressure. This line was breached late in the Asian session.
- 1215 is an immediate support level.
- Current range: 1215 to 1240.
Further levels in both directions:
- Below: 1215, 1186, 1156, 1136 and 1101
- Above: 1240, 1252, 1275 and 1300
OANDA’s Open Positions Ratio
XAU/USD ratio has a majority of long positions, indicative of trader sentiment in favor of gold breaking out and moving higher.
XAU/USD Fundamentals
- 12:30 US Building Permits. Estimate 1.04M.
- 12:30 US Fed Chair Janet Yellen Speaks.
- 12:30 US Housing Starts. Estimate 1.02M.
- 13:55 US Preliminary UoM Consumer Sentiment. Estimate 84.3 points.
- 13:55 US Preliminary UoM Inflation Expectations.
Get The News You Want
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.