- SWFX traders are 52% bearish
- 56% of pending commands are to buy the metal
- The bullion opened at 1,276.71
- Upcoming Events: President Trump's Speech
US employers posted more open job positions in the second month of the year, official figures revealed on Tuesday. According to the Job Openings and Labor Turnover survey published by the Labour Department, job openings advanced 2.1% to a seasonally adjusted 5.7M during the reported period, following the preceding month's 5.6M and surpassing market analysts' expectations for a decrease to 5.59M. That marked the highest level since July 2016. February's gain boosted the jobs opening rate to 3.8% after it remained steady at 3.7% for four consecutive months. Nevertheless, hiring fell to 5.3M in February, compared to 5.4M registered in the preceding month. Therefore, the hiring rate dropped to 3.6% from 3.7% in January.
Analysts stated that the US labour market is at or close to full employment, with the unemployment rate at a near 10-year low of 4.5%. Monthly job openings are closely followed by the Federal Reserve Chair Janet Yellen, as it is considered as a key barometer of economic conditions and the labour market trends. On Monday, the Fed Chair hinted at two more rate hikes this year, and some analysts suggested that the Fed might want to pull the trigger in June. After the release, the USD/JPY pair dropped to 100.58, its lowest level since November 18.
Upcoming events: Donald Trump speaks
The most notable event, which has been scheduled to occur during Wednesday's trading session, will offset everything else. The US President Donald Trump is set to give a speech at 10:00 GMT. He is most likely to address the latest global events, which have caused a run to safety in finance.
Gold skyrockets on political turmoil
Daily chart: The US and Russian tensions over Syria and North Korean nuclear threats are the driving force behind the surge in the value of the yellow metal. Due to the combined effect of the global political turmoil a run to safety has caused the bullion's price to jump and touch the 1,280 level on Wednesday morning, which is a two percent increase, if compared to Tuesday's opening price. It is most likely that the fundamentals will continue to dictate the fluctuations in the commodity price, as technical analysis has become impaired on the daily chart.Daily chart
Hourly chart: The hourly chart reveals that the commodity price surged from 12:00 GMT to 15:00 GMT on Tuesday. During that time the bullion's price jumped 1,527 base points. Afterwards the commodity price continued and is set to continue to surge at the same rate, as it had done before the jump.
Hourly chart
Markets become neutral
OANDA Gold traders are also neutral, as open positions are 50.52% long on Wednesday, compared to 57.41% previously. Meanwhile, traders of SAXO bank have joined the rest of the market in a common opinion, as 50.26% of open positions are long, compared to 60.92% on Tuesday.