- SWFX traders are 53% bullish (-1%)
- 57% of pending orders in 500-pip range are set to BUY the gold
- Gold price continues the surge
- No fundamentals in this session
Factory activity in Chicago strengthened again by the end of the year, according to the MNI survey.
Market News International stated that its PMI of manufacturing sector in Chicago jumped to 67.6 in December, after 63.9 reading in the previous month. The survey also showed that businesses were shoring the stock level to support lead times and prepare for next year's product launches. However, the employment rate decreased, but remained higher than in post-crisis times.
Lack of fundamentals
No fundamentals that could have an effect on the XAU/USD pair are scheduled for this session.
XAU/USD makes further advance
Thursday's trading session did not introduce massive changes to the pair's movement, as bulls continued to dominate the yellow metal. As a result, the pair had pushed up to the 1295.32 mark by Friday morning.
As apparent on the chart, the steepness of the rate's upward move during the past few days has decreased, resulting in a breakout of the minor ascending channel early this morning. This factor could point to possible weakness.
However, if the US Dollar is unable to recover from its recent weakness, Gold is likely to advance even further. The nearest resistance is set by the 23.60% Fibo retracement at 1302.32.
Meanwhile, a possible downside target for this session could be the 1290.00 area, as the 55-hour SMA and the weekly R1 are located nearby.
Hourly Chart
The daily chart continues to show a strong up-trend that has dominated the pair during most December. Gold surged 0.61% against the Greenback on Thursday. The same upward movement could prevail in this session, as well; however, it should be weaker. No daily resistance areas are located nearby, while the southern boundary is guarded by the monthly R1 located at 1295.14.
Daily Chart
Markets sentiment remains bullish
SWFX market sentiment is bullish on Gold, as 53% of open positions are long (-1%). Meanwhile, 70% of pending orders are to buy the commodity (-1%).
OANDA traders are bullish, as 54% of open positions are long, compared to 61% on the previous day. In the meantime, SAXO bank traders are neutral, as their open positions stand at equilibrium.