Gold is uneventful on Monday, as the metal trades at a spot price of $1056.62 in the European session. It’s a quiet start to the week, with just two events on the schedule – Chicago PMI and Pending Home Sales.
The day after Thanksgiving was not just Black Friday in the malls with low low prices, as gold prices dropped by more than 1 percent. The struggling base metal has now slipped to its lowest level since February 2010. November was a brutal month for the metal, which gave up about 7 percent of its value. With the markets eyeing a rate hike in December, and the US dollar continuing to pound its rivals, investors have little reason to turn to gold. A rate hike is bearish for gold, since gold becomes less competitive with yield-bearing assets. So increasing speculation about a rate hike has been bad news for the precious metal.
XAU/USD Fundamentals
Monday (Nov. 30)
- 14:45 US Chicago PMI. Estimate 54.3 points
- 15:00 US Pending Home Sales. Estimate 1.6%
Upcoming Key Events
Tuesday (Dec. 1)
- 15:00 US ISM Manufacturing PMI. Estimate 50.6 points
*Key releases are highlighted in bold
*All release times are GMT
XAU/USD for Monday, November 30, 2015
XAU/USD November 30 at 12:05 GMT
XAU/USD 1058.21 H: 1058 L: 1053
XAU/USD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 980 | 1024 | 1043 | 1080 | 1098 | 1134 |
- XAU/USD has been uneventful in the Asian and European sessions.
- 1080 has strengthened in resistance as the pair continues to lose ground.
- 1043 is providing support.
- Current range: 1043 to 1080
Further levels in both directions:
- Below: 1043, 1024 and 980
- Above: 1080, 1098, 1134 and 1151
OANDA’s Open Positions Ratio
XAU/USD ratio continues to show little movement. Long positions continue to make up a strong majority (73%), indicative of strong trader bias towards gold prices reversing directions and moving to higher levels.