MarketPulse | Jan 15, 2018 11:25PM ET
Gold prices continue to head higher, and has posted slight gains in the Monday session. In North American trade, the spot price for an ounce of gold is $1341.40, up 0.22% on the day. There are no US indicators on the schedule, as the markets are closed in observance of Martin Luther King Day. On Tuesday, the sole indicator is the US Empire State Manufacturing Index.
Gold has reeled off five straight winning weeks, taking advantage of a broadly lower US dollar. Gold has climbed an impressive 3.0% in January, as the metal is trading at its highest level since September 2016. Although US numbers have generally been strong of late, this has not stemmed the gold rally. If major currencies such as the euro and yen continue to make inroads against the dollar, traders can expect the gold rally to continue.
On Friday, gold prices pushed higher, as the markets were not impressed with US consumer numbers. CPI slowed to 0.1%, down from 0.4% a month earlier. Core CPI was stronger, improving to 0.3%. Both indicators were within expectations, but pointed to weak inflation levels. On the bright side, consumer spending remained strong. December retail sales, boosted by Christmas shopping, were up 5.4% compared to a year ago. Although investors were not impressed with the December data, as the euro rally continued, the spending numbers point to a strong finish for the economy in 2017. Earlier in the week, gold gained ground after hawkish ECB minutes raised speculation that the ECB could wind up its asset purchase program later this year. The minutes sent the US dollar to lower ground.
XAU/USD Fundamentals
Monday (January 15)
Tuesday (January 16)
*All release times are GMT
*Key events are in bold
XAU/USD for Monday, January 15, 2018
XAU/USD January 15 at 11:00 EST
Open: 1338.42 High: 1344.87 Low: 1336.00 Close: 1341.40
XAU/USD Technical
S3 | S2 | S1 | R1 | R2 | R3 |
1285 | 1307 | 1337 | 1375 | 1416 | 1433 |
Further levels in both directions:
OANDA’s Open Positions Ratio
In the Monday session, XAU/USD ratio is showing long positions with a majority (34%). This is indicative of trader bias towards XAU/USD continuing to move higher.
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