- SWFX market sentiment is 73% bullish
- Pending orders in the 1000-pip range are set to buy in 54% of all cases
- Canadian data at 12:30 GMT ends the week
Gold prices fell exactly as forecast on Thursday. Namely, it broke below the pivot point at 1,195.60 mark and fell down below the 1,185.00 mark.
The Bureau of Economic Analysis released the US Final GDP data that came out In line with expectations of 4.2%.
Donald Trump, The president of the United States said at a Wednesday news conference: "We're doing much better than anybody thought possible,".
US data cover webinar at 12:20 GMT
Macroeconomic data release traders need to take into account that there will be more releases on Friday.
At 08:30 GMT the UK Current Account will be published, and at 12:30 GMT the Canadian GDP data will be published.
Both events will be covered by Dukascopy Analytics on the bank's live webinar platform. The webinars will start ten minutes before the data is released.
XAU/USD short term forecast
In regards to the near-term future, most likely, the yellow metal will trade downside to the monthly S1 at the 1,166.20 level.
Meanwhile, note that there are medium scale Fibonacci retracement levels in action, which were spotted only on Friday. Namely, the 1,180.00 level, where the 38.20% retracement is located at, needed to be taken into account on Friday. It could provide support and stop the decline.
Hourly Chart
The decline occurred without the additional resistance of the 55-day simple moving average. The SMA did not manage to approach the commodity price before the fall of the gold price began.
Meanwhile, note that the 61.80% larger scale Fibonacci retracement level was located at the 1.176.30 level and should provide support to the metal's price in the upcoming trading sessions.
Daily Chart
Long position proportion increases
On the Swiss Foreign Exchange 73% of traders are long on gold. Previously, 72% were long.
Meanwhile, most trader set up pending orders are set to buy the metal by closing short positions or opening additional long positions. Namely, 56% of all trader set up orders are set to buy the metal under various conditions.
The rate hike did not change the opinion of the traders, and the recent decline has not also changed the open position proportions. It seems like gold traders do not care about small and medium scale fluctuations.