Gold punches above $1300 after employment indicator falters

Gold has started the week with considerable gains. In North American trade, the spot price for one ounce of gold is $1304.68, up 0.55% on the day. On the fundamental front, In the U.S., the highlight was JOLTS Jobs Openings, which dropped sharply to 7.09 million, down from 7.58 million a month earlier. This reading was well short of the forecast of 7.54 million. On Wednesday, the U.S. releases key inflation indicators. CPI is expected to improve to 0.3% and Core CPI is projected to climb to 0.2%. As well, the FOMC releases the minutes of the March policy meeting

Gold has impressed this week, posting gains of 1.0 percent. Gold prices have climbed to a 2-week high on Tuesday, buoyed by a soft showing from JOLTS Job Openings. This comes on the heels of lukewarm March employment numbers. Wage growth gained just 0.1%, while nonfarm employment payrolls came in at 196 thousand, lower than recent readings which broke above the 300-thousand level. With the labor market losing some its luster and the U.S. economy showing signs of slowing down, gold has taken advantage and pushed above the symbolic number of $1300.

On Wednesday, investors will be keeping a close look at Federal Reserve, which releases the minutes of the March meeting. At the meeting, the Fed said it would start tapering the reduction of its balance sheet in May. This marks a loosening of policy, and comes in response to weaker economic data out of the U.S. in recent months. The minutes should be treated as a market-mover, and if investors don’t like what they hear, risk apprehension could jump and the gold rally could continue.

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XAU/USD Fundamentals

Tuesday (April 9)

• 6:00 US NFIB Small Business Index. Estimate 101.3. Actual 101.8
• 10:00 US JOLTS Job Openings. Estimate 7.54M. Actual 7.09M
• 10:03 US IBD/TIPP Economic Optimism. Estimate 53.2. Actual 54.2
• 17:00 US FOMC Member Quarles Speaks
• 18:45 US FOMC Member Clarida Speaks

Wednesday (April 10)

• 8:30 US CPI. Estimate 0.3%
• 8:30 US Core CPI. Estimate 0.2%
• 14:00 US FOMC Meeting Minutes

*All release times are DST

*Key events are in bold

XAU/USD for Tuesday, April 9, 2019

XAU/USD April 9 at 12:40 DST

Open: 1297.53 High: 1306.23 Low: 1296.68 Close: 1304.68

XAU/USD Technical

XAU/USD posted slight gains in the Asian and Europeans sessions. The pair has recorded stronger gains in the North American session

• 1284 is providing support
• 1306 is under pressure in resistance
• Current range: 1284 to 1306
  

Further levels in both directions:

• Below: 1284, 1261 and 1243
• Above: 1306, 1326, 1344 and 1365

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