Gold Prices Stable Ahead of US Manufacturing, Confidence Numbers

Frankfurt (Oct 28)  Gold is listless on Tuesday continuing the lack of movement which started the week. In the European session, the spot price per ounce stands at $1228.44. On the release front, there are two key events on the schedule – Core Durable Goods Orders and CB Consumer Confidence. If either of these indicators surprises the markets, we could see some stronger movement from the pair in the North American session.

In the US, the Federal Reserve wraps up a two-day meeting on Wednesday with the release of a policy statement. The Fed is expected to wind up QE, and if policymakers delay this move, the dollar will likely take a hit against its major rivals. The markets will also be looking for hints regarding the timing of a rate hike, which is expected sometime in 2015. Traders should treat this release as a market-mover which could have a significant impact on the direction of EUR/USD.

On Sunday, the ECB released the results of its stress tests of European banks. The exercise marked a comprehensive and rigorous review of the health of 130 European banks. No German or French banks failed the test, but the third largest Italian lender, Banca Monte Paschi, posted a capital shortfall and will have to explain to the ECB how its plans to eliminate the shortfall. The ECB is trying to restore confidence in the European banking sector and encourage more borrowing and spending on the part of consumers and businesses.

Source: FXstreet