Gold has edged lower on Tuesday, as the spot price stands at $1306.09 per ounce in the European session. On the release front, it’s a busy day in the US, highlighted by Core CPI and Existing Home Sales, the first major events of the week from the US. The markets are bracing for another weak outing from Core CPI, while Existing Home Sales is expected to improve sharply.
International trouble spots continue to grab the headlines, as nervous investors keep an eye on events Ukraine and the Middle East. Last week’s downing of a Malaysian Airlines jet, apparently by pro-Russian separatists, has seriously frayed relations between Europe and the US with Russia, which have already been strained since the latter annexed Crimea. Fighting continues between the separatists and Ukrainian forces in Eastern Ukraine. The Europeans are threatening stronger sanctions against Russia, and escalating tensions within Europe does not bode well for the euro. Meanwhile, the fighting in Gaza between Hamas and Israel has intensified, as the international community scrambles to try to get the two sides to agree to a cease fire. Casualties have been mounting on both sides following Israel’s ground offensive into Gaza.
On Friday, US Consumer Sentiment remained steady at 81.3 points, but this was well below the estimate of 83.5 points. A day earlier, Unemployment Claims dropped slightly to 302 thousand, beating the estimate of 310 thousand. This figure marks a seven-week low, as the economy continues to churn out impressive employment data. With Janet Yellen telling Congress that a rate hike could be pushed forward if inflation and employment data exceeds expectations, improving employment data will put more pressure on the Fed to raise rates.
XAU/USD for Tuesday, July 22, 2014
XAU/USD July 22 at 11:35 GMT
XAU/USD 1306.09 H: 13113.25 L: 1304.65
XAU/USD Technical
S3
S2
S1
R1
R2
R3
1252
1275
1300
1315
1331
1354
XAU/USD edged lower late in the Asian session. The pair is almost unchanged in European trading.
1315 is the next resistance line. 1331 follows.
1300 has switched to a support level as the pair has lost ground. 1275 is stronger.
Current range: 1300 to 1315.
Further levels in both directions:
Below: 1300, 1275, 1252 and 1240.
Above: 1315, 1331, 1354 and 1375.
OANDA’s Open Positions Ratio
XAU/USD ratio has posted gains in short positions on Tuesday, reversing the direction seen a day earlier. This is consistent with the movement of the pair, as gold is down slightly. The ratio has a majority of long positions, indicative of trader bias towards gold moving upwards.
XAU/USD Fundamentals
12:30 US Core CPI. Estimate 0.2%.
12:30 US CPI. Estimate 0.3%.
13:00 US HPI. Estimate 0.4%.
14:00 US Existing Home Sales. Estimate 4.98M.
14:00 US Richmond Manufacturing Index. Estimate 5 points.
*Key releases are highlighted in bold
*All release times are GMT
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.
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