Gold prices are not showing much movement on Thursday, as the spot price stands at $1245.21 per ounce in Tuesday's European session. The metal continues to have a very quiet week. The markets are keeping a close eye on the ECB, which is expected to take action at its policy meeting on Thursday. In the US, today's major event is Unemployment Claims.
All eyes are on the ECB policy statement later and follow-up press conference later on Thursday. With Eurozone inflation mired at low levels, there is a strong likelihood that the ECB could finally pull the trigger and take action at its policy meeting on Thursday. The central bank could elect to reduce the benchmark interest rate or deposit rates. However, the latter is currently at the zero level, and the ECB has never before lowered deposit rates into negative territory. Another option is asset purchases, which has been used extensively by the US and UK central banks.
In the US, ADP Nonfarm Payrolls had been on an upward trend, but that ended on Wednesday, as the key employment indicator took a tumble. The indicator dropped to 179 thousand, well off the April reading of 220 thousand. The estimate stood at 217 thousand. The dollar held firm despite the weak reading, but the euro could gain ground if the official Nonfarm Payrolls release follow suit with a poor result on Friday. Later on Thursday, we'll get a look at Unemployment Claims, with the markets expecting a slight rise in claims.
XAU/USD June 5 at 11:05 GMT
XAU/USD 1245.21 H: 1245.57 L: 1241.90
XAU/USD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1182 | 1200 | 1230 | 1250 | 1260 | 1275 |
- Gold is steady on Thursday.
- 1230 is providing support. Next there is support at the round number of 1200.
- 1250 is the next resistance line. 1260 is stronger.
- Current range: 1230 to 1250.
Further levels in both directions:
- Below: 1230, 1200, 1182 and 1158
- Above: 1250, 1260, 1275, 1300, 1315
OANDA's Open Positions Ratio
XAU/USD ratio is unchanged in Thursday trade. This is consistent with the pair's current lack of movement. The ratio has a substantial majority of long positions, reflecting a strong trader bias towards gold breaking out and gaining ground against the US dollar.
Gold continues to show very little movement. XAU/USD is unchanged in the European session.
XAU/USD Fundamentals
- 12:30 US Unemployment Claims. Estimate 309 thousand.
- 14:30 US Natural Gas Storage. Estimate 116B.
- 17:30 US FOMC Member Narayana Kocherlakota Speaks.