Gold remains under the key level of $1300, as the spot price stands at $1293.13 per ounce late the European session. The metal has now slipped about 2% in the past week. On the release front, it's a quiet day, highlighted by Core Durable Goods Orders. The markets are expecting a healthy gain after a decline in the May release. On Thursday, US Unemployment Claims sparkled but New Home Sales were well short of expectations.
Unemployment Claims tumbled last week, as the key indicator fell to 298 thousand, its lowest level since February 2008. This surprised the markets, which had expected a reading of 301 thousand. The strong release continues a string of solid employment data, and the dollar could get a boost from the good news. As well, good news on the employment front is bound to increase speculation about a rate increase by the Federal Reserve.
US housing data was dismal on Thursday, as New Home Sales slumped to a three-month low. The key indicator fell to 406 thousand, compared to 504 thousand in the previous release. The markets were way off in their forecast, with an estimate of 485 thousand. There was much better news earlier in the week, as Existing Home Sales jumped to 5.04 million, surpassing the estimate of 4.94 million. This was the best showing we've seen since October.
XAU/USD 1293.13 H: 1294.51 L: 1290.80
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