Gold prices are down in the Tuesday session, continuing the losses which marked the start of the week. In the North American trade, the spot price for one ounce of gold is $1223.63 down 0.56% on the day. On the release front, CB consumer confidence dipped to 137.9, but the reading beat the forecast of 136.3 points. On Thursday, we’ll get a look at ADP nonfarm payrolls, followed by official nonfarm payrolls on Friday.
The U.S economy continues to fire on all cylinders, and this was underscored by the first GDP report of the third quarter. On Friday, Advance GDP posted an impressive Gain of 3.5%, above the estimate of 3.3%. Although the gain of 3.5% certainly represents a brisk pace of expansion, it was well below the sizzling Final GDP for Q2, which came in at 4.2%. The downward trend could continue as we move into the fourth quarter. On Monday, the Atlanta Fed released its well-respected GDP forecast, which predicted growth of just 2.6% in the fourth quarter. If Q4 growth does fall below the 3-percent threshold, the Federal Reserve would have to rethink its plans for three rate hikes in 2019 and that could put pressure on the high-flying U.S dollar.
Major central banks are well-known for their opposition to digital currencies, but Janet Yellen, former chair of the Federal Reserve, went a step further on Monday. Yellen didn’t pull any punches as she said that Bitcoin is “anything but” a useful currency. Last December, just before leaving the Fed, Yellen labeled Bitcoin a “highly speculative asset” and “not a stable source of value”.
Tuesday (October 30)
- 9:00 US S&P/CS Composite-20 HPI. Estimate 6.0%. Actual 5.5%
- 10:00 US CB Consumer Confidence. Estimate 136.3. Actual 137.9
Wednesday (October 31)
- 8:15 US ADP Nonfarm Employment Change. Estimate 190K
*All release times are DST
*Key events are in bold
XAU/USD for Tuesday, October 30, 2018
XAU/USD October 30 at 12:45 DST
Open: 1229.52 High: 1230.73 Low: 1219.97 Close: 1222.63
XAU/USD ticked higher in the Asian session but then gave up these gains. The pair posted considerable losses in European trade and has recorded small gains in North American session
- 1220 is providing support
- 1236 was tested earlier in resistance
- Current range: 1220 to 1236
Further levels in both directions:
- Below: 1220, 1204, 1170 and 1146
- Above: 1236, 1261 and 1284
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.
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