Gold Improves, Shrugs Off Sharp Unemployment Claims
Gold is firm on Friday, as the spot price stands at $1337.62 per ounce in the European session. Friday has a very light schedule, with just one event, the Federal Budget Balance.
In the US, Unemployment Claims dropped, as employment data continues to impress. The key indicator dropped to 304 thousand, well below the estimate of 316 thousand. Employment numbers for June have looked sharp, led by a jump in Nonfarm Payrolls and a drop in the unemployment rate. The strong employment numbers have increased speculation about an interest rate hike by the Federal Reserve, and remarks by Fed policymakers will be under the market microscope.
The Federal Reserve minutes did not shed much light on when the Fed plans to raise interest rates, but policymakers did agree to wind up the QE scheme by October. The asset purchase program flooded the economy with over $2 trillion, and the Fed has been steadily reducing the program since last December. Winding down QE will require several more tapers by the Fed, but that shouldn’t pose a problem, given the solid employment data the economy has been churning out.
XAU/USD for Friday, July 11, 2014
XAU/USD July 11 at 12:30 GMT
XAU/USD 1337.62 H: 1338.93 L: 1334.62
XAU/USD Technical
- XAU/USD has shown little movement in the Asian and European sessions.
- 1354 is the next resistance line. 1375 follows.
- 1331 is a weak support level. 1315 is stronger.
- Current range: 1331 to 1354.
Further levels in both directions:
- Below: 1331, 1315, 1300 and 1275
- Above: 1354, 1375, 1388 and 1423
XAU/USD Fundamentals
- 18:00 US Federal Budget Balance. Estimate 79.5B.
*Key releases are highlighted in bold
*All release times are GMT
Source: marketpulse
