MarketPulse | Dec 23, 2014 07:18AM ET
Gold is showing little movement on Tuesday, as the spot price stands at $1177.61 per ounce. On the release front, there are a host of releases ahead of the Christmas holiday. There are four key events on the calendar – Core Durable Goods Orders, Final GDP, UoM Consumer Sentiment and New Homes. With the markets having plenty of data to assess, we could see some movement from gold during the North American session.
It was a disappointing start to the week for US releases, as Existing Home Sales fell to 4.93 million in November, its lowest level in six months. The markets had expected a reading of 5.21 million. The weak reading followed the October release of 5.26 million, which was its best showing in over a year. Later on Tuesday, we’ll get a look at New Home Sales. Little change is expected in the upcoming release, with an estimate of 461 thousand.
Previous Fed policy statements have usually stated that the Fed would maintain low rates for a “considerable time”, but the December statement changed terminology, saying the Fed would be “patient” before raising rates. In a follow-press conference, Federal Reserve chair Janet Yellen was less ambiguous, saying that the Fed was unlikely to raise rates for the “next couple of meetings”. The markets took this to mean that a rate hike is in the works, but not before April. Gold prices remained steady after the Fed statement, but as an interest rate hike by mid-2015 seems likely, there is room for the dollar to make gains against gold.
XAU/USD for Tuesday, December 23, 2014
XAU/USD December 23 at 11:55 GMT
XAU/USD 1177.61 H: 1203.36 L: 1194.80
XAU/USD Technical
S3 | S2 | S1 | R1 | R2 | R3 |
1130 | 1156 | 1175 | 1200 | 1215 | 1240 |
Further levels in both directions:
OANDA’s Open Positions Ratio
XAU/USD ratio is pointing to gains in long positions on Tuesday, continuing the direction which started the week. This is consistent with the pair’s movement, as gold has posted slight gains. The ratio has a majority of long positions, indicative of trader bias towards gold moving to higher ground.
XAU/USD Fundamentals
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.