Gold Edges Lower on Memorial Day Holiday

Gold is trading quietly in the Monday session, hugging the $1300 level. In the North American session, the spot price for one ounce of gold is $1298.76, down 0.24% on the day. On the release front, U.S banks are closed for the Memorial Day holiday. On Tuesday, the US releases CB Consumer Confidence.

Is the summit on or off? Gold prices dropped close to 1 percent on Thursday, following reports that the summit between President Trump and North Korean leader Kim Jong-un had been canceled. Trump sent a letter to Kim, saying that he could not go ahead with the meeting, scheduled for June 12 in Singapore, after particularly harsh comments by the North Korean leader. For its part, Pyongyang was restrained in its response, saying that it still looked forward to resolving outstanding issues with the US. There are now growing expectations that the summit, scheduled for June 12 in Singapore, could still take place. The White House has sent a team to Singapore in case the summit is back on, and neither side will deny or confirm whether the meeting will take place. Meanwhile, the leaders of South Korea and North Korea met on the weekend. That meeting was completely unexpected and raises hopes of a breakthrough in the long conflict between the two Koreas. If the summit between Kim and Trump does take place, investor sentiment could soar, which could weigh on safe-haven gold.

XAU/USD Fundamentals

Monday (May 28)

• There are no U.S events

Tuesday (May 29)

• 9:00 US S&P/CS Composite-20 HPI. Estimate 6.5%
• 10:00 US CB Consumer Confidence. Estimate 128.2

*All release times are DST

*Key events are in bold

XAU/USD for Monday, May 28, 2018

XAU/USD May 28 at 7:10 DST

Open: 1301.83 High: 1301.83 Low: 1295.56 Close: 1298.77

XAU/USD Technical

• XAU/USD edged lower in the Asian session. The pair has shown little movement in the European and North American sessions

• 1285 is providing support
• 1307 is the next resistance line
• Current range: 1285 to 1307

Further levels in both directions:

• Below: 1285, 1260 and 1236
• Above: 1307, 1337, 1375 and 1416

OANDA’s Open Positions Ratio

XAU/USD ratio is showing slight movement towards short positions. Currently, long positions have a majority (65%), indicative of trader bias towards XAU/USD continuing to move to higher ground.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.