Gold Steadies After Losses, Remains Under $1300 

Gold remains under the key level of $1300, as the spot price stands at $1293.13 per ounce late the European session. The metal has now slipped about 2% in the past week. On the release front, it’s a quiet day, highlighted by Core Durable Goods Orders. The markets are expecting a healthy gain after a decline in the May release. On Thursday, US Unemployment Claims sparkled but New Home Sales were well short of expectations.

Unemployment Claims tumbled last week, as the key indicator fell to 298 thousand, its lowest level since February 2008. This surprised the markets, which had expected a reading of 301 thousand. The strong release continues a string of solid employment data, and the dollar could get a boost from the good news. As well, good news on the employment front is bound to increase speculation about a rate increase by the Federal Reserve.

US housing data was dismal on Thursday, as New Home Sales slumped to a three-month low. The key indicator fell to 406 thousand, compared to 504 thousand in the previous release. The markets were way off in their forecast, with an estimate of 485 thousand. There was much better news earlier in the week, as Existing Home Sales jumped to 5.04 million, surpassing the estimate of 4.94 million. This was the best showing we’ve seen since October.

XAU/USD for Friday, July 25, 2014

XAU/USD July 25 at 9:15 GMT

XAU/USD 1293.13 H: 1294.51 L: 1290.80

XAU/USD Technical

• XAU/USD was unchanged in the Asian session and the lack of movement has continued in European trading.
• The round number of 1300 is weak resistance. 1315 is stronger.
• 1275 is providing support. 1252 follows.
• Current range: 1275 to 130.

Further levels in both directions:

• Below: 1275, 1252, 1240 and 1218.
• Above: 1300, 1315, 1331, 1354

XAU/USD ratio is almost unchanged on Friday. This is consistent with the pair’s movement, as the pair is showing little movement. The ratio has a majority of long positions, indicative of trader bias towards gold breaking out and moving upwards.

XAU/USD Fundamentals

• 12:30 US Core Durable Goods Orders. Estimate 0.6%.
• 12:30 US Durable Goods Orders. Estimate 0.4%.

*Key releases are highlighted in bold

*All release times are GMT

 

Source: marketpulse

---