Gold is showing little movement on Thursday, as the pair continues to trade close to the $1200 line. In the European session, the spot price stands at $1205.12. Later in the day, the US will release Unemployment Claims and the Philly Fed Manufacturing Index. If either of these key indicators produce unexpected numbers, we could see some volatility from XAU/USD.
Previous Fed policy statements have usually stated that the Fed would maintain low rates for a “considerable time”, but the December statement changed emphasis, saying the Fed would be “patient” before raising rates. In a follow-press conference, Federal Reserve chair Janet Yellen was less ambiguous, saying that the Fed was unlikely to raise rates for the “next couple of meetings”. The markets took this to mean that a rate hike is in the works, but not before April. Gold prices remained steady after the Fed statement, but increasing talk of an interest rate hike by mid-2015 could boost the dollar against gold.
XAU/USD 1205.12 H: 1206.92 L: 1203.63
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