Gold is showing little movement, as the pair has been listless since sharp losses started off the week. In the European session, the spot price stands at $1198.03. In the US, the FOMC will release its policy statement, and we’ll get a look at November CPI. The markets are expecting a small decline of 0.1%.
Gold prices started the week with losses, as the metal shed about 1.8% of its value on Monday, closing at $1198. Gold continues to trade close to the key $1200 level on Tuesday. Why the sharp drop on Monday? One reason is last week’s US numbers, as solid employment and retail sales numbers helped boosted the Dollar. As well, the markets are expecting a bullish view of the US economy from the Federal Reserve policy statement on Wednesday.
In the US, UoM Consumer Sentiment moved higher for a fourth straight month, pointing to increased optimism among US consumers. The key indicator soared to 93.8 points, its highest level since January 2007 and well above the forecast of 89.6 points. Earlier in the week, there was good news from retail sales and jobless claims. Core Retail Sales came in at 0.5%, ahead of the estimate of 0.1%. Not to be undone, Retail Sales posted a gain of 0.7%, beating the estimate of 0.4%. This was the indicator’s strongest showing in 12 months. There was more good news on the job front, as Unemployment Claims dipped to 294 thousand, below the forecast of 299 thousand.
XAU/USD for Wednesday, December 17, 2014
XAU/USD December 17 at 11:15 GMT
XAU/USD 1198.03 H: 1201.67 L: 1194.49
XAU/USD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1130 | 1156 | 1175 | 1200 | 1215 | 1240 |
- XAU/USD ha been flat in the Asian and European sessions, as the pair continues to hug the 1200 line.
- On the upside, 1200 is under strong pressure. 1215 is stronger.
- 1175 is an immediate support level.
- Current range: 1175 to 1200
Further levels in both directions:
- Below: 1175, 1156 and 1130 and 1111
- Above: 1200, 1215, 1240, 1255 and 1275
OANDA’s Open Positions Ratio
XAU/USD ratio is almost unchanged on Wednesday. This is consistent with the lack of movement we’re seeing from the pair. The ratio has a majority of long positions, indicative of trader bias towards gold breaking out of range and moving to higher ground.
XAU/USD Fundamentals
- 13:30 US CPI. Estimate -0.1%.
- 13:30 US Core CPI. Estimate 0.1%.
- 13:30 US Current Account. Estimate -98B.
- 15:30 US Crude Oil Inventories. Estimate -2.6M.
- 19:00 US FOMC Economic Projections.
- 19:00 US FOMC Statement.
- 19:00 US Federal Funds Rate. Estimate
- 19:30 US FOMC Press Conference.