MarketPulse | May 25, 2018 08:12AM ET
Gold has steadied in the Friday session, after posting strong gains on Thursday. Currently, the spot price for one ounce of gold is $1306.01, up 0.09% on the day. On the release front, it’s a busy day. The focus is on durable goods reports, with expectations of mixed results. Core durable goods orders is expected to climb to 0.5%, but the markets are braced for a decline of 1.3% from durable good orders. If the indicator posts a sharp drop, gold prices could respond with gains. The US will also release UoM Consumer Sentiment, is expected to remain unchanged at 98.8 points.
Gold prices slipped 0.09% on Thursday, following reports that the summit between President Donald Trump and North Korean leader Kim Jong-un had been canceled. Trump sent a letter to Kim, saying that he could not go ahead with the meeting, scheduled for June 12 in Singapore, after particularly harsh comments by the North Korean leader. For his part, Pyongyang was restrained in its response, saying that it still looked forward to resolving outstanding issues with the US. Rising tensions between the US and North Korea have rattled investors in recent months, boosting gold, which is a traditional safe-haven in times of crisis. If tensions worsen between the US and North Korea, investor risk appetite could wane and gold could be the big winner.
The Federal Reserve released the minutes from its May meeting. In the minutes, some Fed policymakers said they favored removing the phrase that “the stance of monetary policy remains accommodative”. Not surprisingly, the minutes didn’t shed light on the Fed’s plans, saying that another rate hike would occur “soon”, on the assumption that the US economy continues to perform as expected. Still, a quarter-point rate hike in August is virtually a given, with the CME Group setting the odds of a hike at 95 percent. This would mark a second hike in 2018. After that? The Fed projection remains at three rates hikes in 2018, but some analysts are predicting four increases this year.
XAU/USD Fundamentals
Friday (May 25)
*Key events are in bold
XAU/USD for Friday, May 25, 2018
XAU/USD May 25 at 7:25 DST
Open: 1304.87 High: 1306.73 Low: 1301.64 Close: 1306.01
XAU/USD Technical
S3 | S2 | S1 | R1 | R2 | R3 |
1236 | 1260 | 1285 | 1307 | 1337 | 1375 |
Further levels in both directions:
OANDA’s Open Positions Ratio
XAU/USD ratio is showing slight movement towards short positions. Currently, long positions have a majority (68%), indicative of trader bias towards XAU/USD continuing to move to higher ground.
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.