- SWFX market sentiment is 63% bullish
- 50% of pending orders in 1000-pip range are set to BUY Gold
- US Crude Oil Inventories
XAU/USD fails to accelerate on Tuesday.
The Census Bureau released Residential Building Permits data that came lower-than-expected of 1.27M, compare to forecasted 1.33M and lower from the previous period.
A member of the California Mortgage Bankers Association, Rob Chrisman said: "More talk of the difficulty builders have finding labor, as well as the constraints they are facing with higher land, labor, and material costs. Yet the Federal Reserve's Beige Book for June noted that contacts in ten out of twelve districts reporting moderate or modest growth."
US Crude Oil Inventories
The main fundamental event today is the US Crude Oil Inventories at 2:30 GMT. This data release will be covered by Dukascopy research team at bank live webinar.
XAU/USD fails to accelerate
Gold remained stable against the US Dollar on Tuesday. It tried to edge higher during the first part of the day, but was stopped by the combined resistance of the monthly S1 and the 55– and 100-hour SMAs.
Technical signals on longer time-frames indicate that the yellow metal is likely to strengthen in the medium term and thus move towards the senior channel. This up-ward trend could be maintained today, as well, in case the 200-hour and 55-period (4H) SMAs are breached at 1,232.00.
Meanwhile, no support is restricting a fall until the senior channel line circa 1,210.00 if the nearest support surrenders.
Hourly Chart
Gold has been guided in a descending channel against the US Dollar since mid-April. During these few months, the commodity has depreciated by nearly 10%.
Technical indicators on the daily time-frame are located in the oversold territory. This suggests that the pair's long-term movement should be tended north. The expected target during the following weeks is the breached senior channel and the 200- and 100-day SMAs near 1,300.00.
Daily Chart
Swiss traders remain bullish
63% open positions of SWFX market traders are bullish. The same situation is apparent with pending orders which were standing at 50% mid-day.
The data reveals that although the bullion has retreated, retail traders have even opened new long positions in the expectations of a surge. Most likely, most of the traders see the continuation of a decline as a statistic improbability.
OANDA traders are bullish on the commodity with 82% of open positions being long on the XAU/USD pair today. Saxo Bank traders are likewise bullish with 76% long positions. This shows that institutional traders are considerably bullish on Gold, while retail ones are more cautious.