- SWFX traders are 54% bullish
- 68% of pending orders in 500-pip range are set to BUY the gold
- Gold price breaks above 1,283.37
- Upcoming Events: US CB Consumer Confidence and Pending Home Sales
Although there was formed a combined resistance barrier, the yellow metal continued to appreciate against the gold. Today the surge is expected to continue at least until the 1,287.00 mark, which represents location of the 100-day SMA.
The Federal Reserve of Richmond released its survey, showing that the manufacturing growth was slower over the month of December. The Manufacturing Index dropped to 20 from 30 in the reported month, being an additional sign for the Fed to keep interest rate hike plans in 2018. Meanwhile, markets remained on a cautions stance ahead of the New Year, with the US Dollar taking less attractive stand, which could be sustained until the Fed's new President Powell takes the position.
First major release after Christmas
The only event that is worth following this week will happen at 15:00 GMT when the Conference Board will publish information on sentiment of American consumers.
XAU/USD breaks through monthly PP
Despite existence of a strong resistance barrier formed by the monthly PP and the upper trend-line of a four-month long dominant descending channel the yellow metal continued to rally against the buck and managed to reach the weekly R1 at 1,283.37. Apart from this indicator the exchange rate faces no obstacles on its way up until the 1,287.00 level, which represents location of the 100-day SMA. As more than half of all pending orders are set to buy, the bullion is likely to continue the surge. The upward movement is also supported by the junior ascending channel, which can be clearly seen on daily chart. However, this scenario could be altered if release of the CB Consumer Confidence appears to be worse than expected.
Hourly Chart
Contrary to expectations, the pair managed to break through the upper boundary of a long-term dominant descending channel. In short-term, the pair is likely to reach the 100-day SMA at 1,287.43 and, ultimately, the monthly R1 at 1,295.14, which simultaneously represents the two month maximum.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are bullish on valuation of the gold, as 54% of open positions are long. Accordingly, 54% of pending commands are to buy the commodity.
OANDA traders are bullish, as 63% (-2%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are also bullish, as 58% (+2%) of open positions are long.