Gold is steady on Tuesday, as the spot price stands at $1307.47 late in the European session. On the release front, it's another quiet day, highlighted by CB Consumer Confidence. The markets are expecting another strong showing from the June release.
Gold prices have not showed much movement so far this week. Many investors remain on the sidelines, waiting for three key events on Wednesday which could move the markets. The Federal Reserve will release a policy statement and we'll get a look at Advance GDP and the ADP Nonfarm Payrolls. These events could shake up XAU/USD.
Gold prices are sensitive to geopolitical events, and two current hotspots that could affect prices in a hurry 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 week. The US has intensified efforts to halt the violence, but numerous ceasefires have been declared and broken.
