- SWFX traders are neutral in regard to the metal
- 61% of pending commands are to buy the bullion
- The metal's price opened the day's trading at 1,247.15
- Upcoming Events: ECB President Mario Draghi's Speech; US Pending Home Sales
The yellow metal's price on Wednesday morning continued to fluctuate in the rate established during Tuesday's trading session. Due to that reason the markets are still in a dormant mood, while market participants await for a signal, which will reveal the future direction of the yellow metal.
Orders for US-made durable goods dropped more than expected last month, pointing to a slowdown in the manufacturing sector. The Commerce Department reported on Monday that durable goods orders fell 1.1% in May, following the preceding month's downwardly revised drop of 0.8% and falling behind expectations for a 0.5% decline. In the meantime, core durable goods orders rose just 0.1% last month after dropping 0.5% in April, whereas analysts anticipated an increase of 0.4% during the reported month.
Central Bankers speak
There is one thing that must be watched today. It will be the panel discussion of four top central bankers of the world. Poloz, Draghi, Carney and Kuroda from Canada, EU, UK and Japan are set to discuss monetary policy at the forum in Portugal. These men set the tone for the currencies, which stand against the US Dollar. This is an event that is sure to affect the global financial markets in one way or another.
XAU/USD remains below 1,250
On Wednesday morning the yellow metal continued to trade in the range between the support provided by the weekly S1 at 1,246 and the combined resistance of the weekly PP at 1,252.57 and the monthly PP, which is located at the 1,253 mark. Meanwhile, all of the hourly SMAs are located in the middle of the range between the two mentioned levels of significance. The 55 and 100-hour SMAs seem not able to influence the metal's price. However, the 200-hour SMA has proven its strength even in reversing the short term direction of the metal's price. Market participants are set to watch the situation develop, as a break above the 1,250 mark might mean a jump to the 1,260 level. Meanwhile, a fall below the weekly S1, would mark the beginning of a long term decline of the metal.
Hourly Chart
In regards to the daily chart it has to be noted that there are SMAs located close by to the bullion's price. First of all the 100-day SMA is located at the 1,250.36 level. Secondly, the 55-day SMA is at the 1,259.71 mark. The 20-day SMA is enforcing the weekly R1 near the 1,264 level. In regard to the support provided by daily levels of significance, the 200-day SMA and the lower Bollinger band are located, respectively, at 1,237.53 and 1,232.97 levels.Daily Chart
SWFX market is neutral
Traders of Dukascopy have become neutral in regard to the yellow metal, as long and short open positions proportion is equal. However, 61% of trader set up orders are to buy the metal.
OANDA Gold traders have increased their bullish outlook, as open positions are 69.58% long on Wednesday, compared to 67.94% on Tuesday. Meanwhile, traders of SAXO have done the same, as 58.88% of open positions are long. Previously 56.03% of the bank's traders were long.
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 the second half of September. Generally, 39% (+3%) of participants believe the price will be above 1,350 in ninety days. Meanwhile, most people see the bullion in the 1,350-1400 range, as 26% see the metal in that range.