The XAU/USD (Gold vs. the American dollar) settled slightly higher on Friday, marking the first rise in six trading sessions, as resurfacing Ukraine jitters lead some investors to take profit off the table. Valentyn Nalyvaychenko, the head of Ukraine’s security council, said that Russia sent a convoy of trucks to eastern Ukraine without a Red Cross escort. NATO warned that by moving more of its own troops to the border the Russians can prevent Ukrainian troops from establishing control over the border and facilitate the delivery of new weapons to the separatists.

The speech by Yellen at the Kansas City Fed’s economic symposium was more balanced than expected. She said "If progress in the labor market continues to be more rapid than anticipated by the Committee or if inflation moves up more rapidly than anticipated, resulting in faster convergence toward our dual objectives, then increases in the federal funds rate target could come sooner than the Committee currently expects and could be more rapid thereafter. Of course, if economic performance turns out to be disappointing and progress toward our goals proceeds more slowly than we expect, then the future path of interest rates likely would be more accommodative than we currently anticipate". The market was looking for some more specifics in terms of timing but her words are still conditional. One thing is sure though, recent economic data intensified the debate among FOMC members over when to start rate hikes. In other words, flare-ups in geopolitical concerns and uncertainties in the major stock markets will continue providing a lift to gold in the short-term but long-term drivers will be the demand for the American dollar and economic growth.

XAUUSD Week 82514

Friday's data from the Commodity Futures Trading Commission (CFTC) showed that speculative traders on the Chicago Mercantile Exchange reduced their net-long positions in gold to 137976 contracts, from 147681 a week earlier. From a technical perspective, the broader directional bias remains weighted to the down side while the pair is trading below the Ichimoku clouds and the Tenkan-Sen line (nine-period moving average, red line) is below the Kijun-Sen line (twenty six-day moving average, green line). However, at this point, the support around 1268/6 will be something to watch. I think a sustained break below this level is essential if the bears want to march towards the 1240 level. On its way down, support can be found at 1258 and 1251. If the bulls manage to break and hold above the 1286 level, they might have a chance to test the resistance at 1292.70.

XAUUSD Daily 82514

Related Articles
  1. Active Trading

    FYI On ROI: A Guide To Calculating Return On Investment

    Return on investment is a simple equation that can give you an edge when fine-tuning your portfolio - here's how to use it.
  2. Investing

    How to Take Maternity Leave as a Freelancer

    Freelancers are not covered under the Family and Medical Leave Act, but maternity leave is still doable with these tips.
  3. Retirement

    Roth 401(k), 403(b): Which Is Right for You?

    Learn how to decide between a traditional or Roth version of the 401(k), 403(b) or 457(b) retirement plans to help you build your nest egg.
  4. Mutual Funds & ETFs

    Why ETFs Are a Smart Investment Choice for Millennials

    Exchange-traded funds offer an investment alternative to cost-conscious millennials who want to diversify their portfolios with less risk.
  5. Markets

    What Is the Labor Market Conditions Index?

    The Labor Market Conditions Index is a new Fed indicator to track labor statistics. How useful is it?
  6. Investing

    Asset Manager Ethics: Acting With Competence and Diligence

    Managers must make investment decisions based on their personal investment process, which in turn should be based on solid research and due diligence.
  7. Investing

    Asset Manager Ethics: Acting In the Benefit of Clients

    Investment managers should always act to benefit the client. Learn what actions managers should take on a client's behalf.
  8. Investing Basics

    Calculating The Present And Future Value Of Annuities

    Here's everything you need to account for when calculating the present and future value of annuities.
  9. Economics

    The World's Top 10 Economies

    A look at the top ten economies in the world.
  10. Forex Education

    Understanding The Income Statement

    Learn how to use revenue and expenses, among other factors, to break down and analyze a company.
  1. Is North Korea a developed country?

    North Korea is one of the poorest and least developed countries in the world. It is far from a developed country. Because ... Read Full Answer >>
  2. Does Netspend accept wire transfers?

    NetSpend accepts some types of wire transfers to add money to the prepaid debit cards it issues to its customers. There are ... Read Full Answer >>
  3. Is Mexico a developed country?

    As of 2015, Mexico is not a developed country. However, it beats the majority of its peers in the developing world on most ... Read Full Answer >>
  4. Is China a developed country?

    Despite having the world's second-largest economy and third-largest military, China is still, as of 2015, not classified ... Read Full Answer >>
  5. Do FHA loans require escrow accounts?

    Federal Housing Administration (FHA) loans require escrow accounts for property taxes, homeowners insurance and mortgage ... Read Full Answer >>
  6. Is Greece a developed country?

    Greece is a developed country by most meaningful metrics. However, its financial struggles have been well documented in the ... Read Full Answer >>

You May Also Like

Trading Center