Gold is listless on Wednesday, as the metal hugs the $1300 line late in the European session. On the release front, it's a busy day, with three key events out of the US - Advance GDP, ADP Nonfarm Payrolls and the Federal Reserve Policy Statement. Many investors have remained on the sidelines so far this week, waiting for some market-moving data before making any moves.
Gold prices are sensitive to geopolitical events, and there are two current hotspots that could affect dramatically affect prices if the current situation deteriorates. In the Ukraine, tensions remain high after the downing of a Malaysian jetliner, and sporadic fighting continues between pro-Russian separatists and Ukrainian forces. European countries are expected to slap Russia with further sanctions. The second trouble spot is in Gaza, as fighting has raged between Hamas and Israel for over three weeks. The US has intensified efforts to halt the violence, but numerous ceasefires have been declared and broken and casualties continue to mount.
CB Consumer Confidence was outstanding on Tuesday, pointing to a sharp increase in June. The key indicator jumped to 90.9 points, crushing the estimate of 85.5 points. This was the indicator's highest level since September 2007. Consumer confidence is closely tracked by analysts since a confident consumer is likely to increase consumption, which is critical for economic growth.
XAU/USD 1299.43 H: 1300.33 L: 1297.12
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