Gold Shows Little Movement As Unemployment Claims Meets Expectations Gold has shown little change on Friday, continuing the lack of activity we've seen throughout the week. In the European session, the spot price is at $1315.50 per ounce in the European session. On the release front, today's highlight is Revised UoM Consumer Sentiment, with the markets expecting another strong reading in May. On Friday, Ukraine signed an association agreement with the EU, which strengthens economic and political ties between Ukraine and the EU. Earlier in the year, the decision by the Ukrainian president not to sign the deal led to widespread riots and the installation of a new government in Kiev. Predictably, Russia is upset about the trade deal and has warned about consequences if its economic interests are harmed as a result of the agreement. The situation remains tense in eastern Ukraine, and a flare-up in violence could rattle the markets and affect gold, which tends to gain ground on geopolitical instability. XAU/USD displayed little response to US Unemployment Claims, which has not shown much movement in the month of June. The key indicator came in at 312 thousand, slightly better than the estimate of 314 thousand. Earlier in the week, GDP shocked the markets with a five-year low and durables softened as well. GDP dropped by 2.9%, much worse than the 1.8% loss expected by the markets. Core Durable Goods Orders declined by 0.1%, its first decline in five months. The estimate stood at 0.3%. Durable Goods Orders looked even worse, coming in at -1.0%, shy of the estimate of -0.1%.

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