Gold has posted small losses in Monday trading. In the North American session, the spot price for one ounce of gold is $1304.16, up 0.13% on the day. There are no major events on the calendar.

In the U.S., consumer inflation remains soft, which means there is little pressure on policymakers to raise rates in the near future. In February, Core CPI edged down to 0.1%, while CPI remained steady at 0.2%. Consumer inflation remains well below the Federal Reserve’s target of 2.0 percent, so there is little pressure on the Fed to raise rates anytime soon. Policymakers have been signaling that the Fed could stay on the sidelines until the second half of 2019, and this stance was underscored by Fed Chair Powell. Last week, Powell stated that the Fed would remain patient and was in no hurry to change interest rate policy. The dovish stance of the Fed could weigh on the dollar, as a lack of rate hikes makes the greenback less attractive to investors.

With the U.S-China trade war showing signs of easing, there were expectations that President Trump and Chinese President Xi might hold a summit in late March. However, it was reported last week that the two leaders will not meet before April. President Trump has said that there will be news in the next 3-4 weeks, which has raised hopes that China and the U.S. will hammer out an agreement. If there are positive developments in the trade war, risk appetite will likely climb, which would be bearish for safe-haven gold.

Yen slides on weak trade data

Sterling, yields and stocks set for a volatile week

XAU/USD Fundamentals

Monday (March 18)

  • 10:00 US NAHB House Market Index. Estimate 63. Actual 62

Tuesday (March 19)

  • 10:00 US Factory Orders. Estimate 0.3%

*All release times are EST

*Key events are in bold

XAU/USD for Monday, March 18, 2019

XAU/USD March 18 at 12:30 DST

Open: 1302.43 High: 1306.78 Low: 1298.33 Close: 1304.16

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1243 1261 1284 1306 1326 1344

XAU/USD posted slight losses in the Asian session. The pair reversed directions in European trade and posted considerable gains. The pair is steady in North American trade

  • 1284 is providing support
  • 1306 is a weak resistance line
  • Current range: 1284 to 1306

Further levels in both directions:

  • Below: 1284, 1261 and 1243
  • Above: 1306, 1326, 1344 and 1365