- SWFX traders are 51% bullish
- 63% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,217.52
- Upcoming Events: Fed Chair Yellen Testifies
The bullion follows the path, which has been forecasted. The commodity price has revealed the speculated ascending channel pattern, as it has reached for the resistance of the first monthly support level. The monthly S1 is located at the 1,220.50 mark.
Euro zone Sentix economic sentiment remained close to the ten-year high, a private survey showed on Monday. The Sentix Investor Confidence Index dropped 0.1 point to 28.3 in June, following a reading of 28.4 in the preceding month and beating forecasts for a decline to 28.1. In the last few days, market activity was determined by investors' fears over interest rate policy changes in the EU. With a strongly improved economic momentum in the Euro zone, investors' assessment of the current situation increased for the seventh consecutive time, reaching 37.3 points, the highest level in nearly 10 years.
Janet Yellen testifies
An out of the ordinary event is set to occur on Wednesday. The chairwoman of the Federal Reserve Janet Yellen is set to speak publicly. To be precise, the chair is set to testify at 14:00 GMT before the House Financial Services Committee in Washington DC. The text of the speech is usually published at the start of the testimony, and it does not cause a lot of volatility. However, the questions of the committee are the ones, which might influence the financial markets through the US Dollar.
XAU/USD reaches 1,220 mark
The forecasted scenario of a surge of the yellow metal has become reality. As it was expected, an ascending short term pattern has revealed itself. In accordance with the pattern the commodity price is set to continue the surge. Meanwhile, in the near future, the bullion's price is set to be supported by the 55 and 100-hour SMAs, respectively, at 1,213.26 and 1,217.12 marks. However, during the reveal of the pattern the metal bounced off the resistance of the monthly S1, which is located at the 1,220.50 mark. During Wednesday's trading session the course of the metal is quite unclear, as it is set to decline down to the lower trend line of the ascending channel. Although, the course of the upcoming short lived bullion's fall is quite hard to pinpoint due to the existence of the various moving support levels.
Hourly Chart
The daily chart reveals that there are no daily levels of significance near the commodity price. However, it can be noted that the weekly PP is located at the 1,221.18 level. Moreover, the lower Bollinger band has moved away from the metal to the downside, as on Wednesday morning it fluctuated near the 1,208 level.Daily Chart
SWFX market is almost neutral
Traders of Dukascopy have not changed their open position proportions, as 51% of traders are bullish. However, 63% of trader set up orders are to buy the metal.
OANDA Gold traders remain with a bullish outlook, as open positions are 76.24% long on Wednesday. In the meantime, SAXO bank sentiment is 66.14% bullish.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being above 1,300 in three months
Traders who were asked regarding their longer-term views on gold during the last month expect, on average, to see the metal around 1,300 in October. Generally, 60% (-3%) of participants believe the price will be above 1,300 in ninety days. Meanwhile, most people see the bullion in the 1,350-1400 range, as 32% (+2%) see the metal in that range.