- SWFX traders are 52% bearish
- 55% of pending orders in 1000-pip range are set to BUY gold
- Commodity price rises to 1,340.00
- Empty first half of the week for fundamentals
On Monday the yellow metal continued the ascent, which was started last week. Moreover, various signals indicate that the metal is set to reach the 1,350.00 mark.
The US producer prices decreased for the first time in more than a year in December, due to falling services costs. The Labour Department stated that the country's PPI slipped 0.1% in the reported month, putting the yearly producer price inflation increase to 2.6% after rising 3.1% in November.
Empty start of the week
The economic calendar for the week in regards to the strength of the metal's price is empty until Thursday.
However, swing traders should tune in for various swing trades scheduled to be covered by the Dukascopy research team during the week.
XAU/USD going to 1,350.00
The yellow metal continues to gain momentum against the US Dollar for the fourth consecutive session. The pair remained stable during the first part of Friday, but eventually was pushed towards the 1,332.00 mark.
Meanwhile, Gold opened higher during the Asian session, while banks in the US are closed due to Martin Luther King Day. Traders are still awaiting new information about inflationary pressures in the US, thus being reluctant to buy the Greenback.
It is likely that the rate pushes even higher within this session towards the weekly R1 or the monthly R2 at 1,348.83 and 1,353.57, accordingly. The upper boundary of a five-week channel is also located in this area.
High volatility is not expected in this session; however, in case of a fall, the pair should be supported by the 55-hour SMA circa 1,327.10.
Hourly Chart
In regards to the daily chart there is no additional information to be drawn from it. By looking at it, one still sees the surge continuing up to the 1,350.00 mark.
Daily Chart
Market sentiment is neutral
SWFX market sentiment is bullish on Gold, as 52% of open positions are short. Accordingly, the same number of pending commands is set to buy the commodity.
OANDA traders are bearish, as 53% of open positions are short. In the meantime, SAXO bank traders are 52% bearish .