- SWFX traders are 55% bearish
- 74% of pending orders in 1000-pip range are set to SELL gold
- Commodity price declines below 1,330
- US data package
After failing two times to pass the 1,345 mark, the yellow metal has touched the 1,325 mark and rebounded against it. Meanwhile, a new descending pattern has been marked.
The US retail sales rose in December, as consumers bought more goods and the previous month's figures were revised up, indicating that the country's economy finished 2017 with solid momentum. The Commerce Department stated that retail sales increased 0.4% in December, following an upwardly revised 0.9% gain previously.
Minor US data sets
After a quiet first half of the week on Thursday data, which will affect the financial markets through the US Dollar, will be released. Namely, at 13:30 GMT the US Building Permits, Housing Starts and Unemployment Claims data will be published by the US government.
In addition the Philly Fed Manufacturing Index will be released at the same time.
XAU/USD likely to edge higher
The yellow metal is starting to weaken gradually against the US Dollar.
Even though the middle of Wednesday's trading session passed with no significant price changes, a strong hourly plunge of 0.78% allowed Gold to breach the 55– and 100-hour SMAs; the weekly PP and the monthly R1 surrendered several hours later.
By Thursday morning, the rate was testing the 200-hour SMA. Given that the total daily losses yesterday was 0.9%, it is likely that bulls try to re-gain some lost positions in this session—a scenario that is likewise supported by north-tended technical indicators.
The highest point for the following session could be the combined resistance of the 55– and 100-hour SMAs and the bottom boundary of the breached channel circa 1,355.00.
Hourly Chart
In regards to the daily chart. It has revealed an important piece of information. The pair's recent surge stopped at the 1,345 mark because of a dominant resistance line.
A dominant trend line, which can be drawn by connecting November high levels was at fault. Moreover, by using this line to set a parallel one, a support line can be drawn. Most likely this line will be encountered in the upcoming months.
Daily Chart
Market sentiment moves to the bearish side
SWFX market sentiment is bullish on Gold, as 55% of open positions are short. However, 58% of pending commands are set to buy the commodity.
OANDA traders are bearish, as 56% of open positions are short. In the meantime, SAXO bank traders are 51% bearish.