- SWFX traders are 56% bearish
- 65% of pending commands are to buy the metal
- The bullion opened at 1,276.02
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Upcoming Events: FOMC Member Kashkari's Speeches
Due to the French election induced certainty the yellow metal has fallen. However, the future direction of the metal seems unclear at the moment, as the bullion shows various signals from both technical and fundamental perspective.
US manufacturing activity in the Mid-Atlantic region slowed markedly in April, official figures revealed on Thursday. The Philadelphia Federal Reserve reported its Manufacturing Index dropped to 22.0 in the reported month, following March's reading of 32.8 and falling behind analysts' expectations for a decrease to 25.6 points. Analysts stated that business optimism prompted by Donald Trump's win in the presidential election started to fade, putting downward pressure on business activity.
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Upcoming events: FOMC Member Kashkari
Monday will be a quiet day for fundamental events and speeches, as there is only one event occurring during the day's trading session. However, that type of event will take place two times. The reason for that is the fact that the FOMC member Kashkari is set to speak publicly two times during the day. First at 15:30 GMT and later at 19:15 GMT.
Read More: Fundamental Analysis
Gold trades near 1,270 on Monday
On Monday morning the yellow metal was recovering after the low opening and fall caused by the French presidential election. The bullion almost touched the 1,265 mark before it rebounded and surged up to the 1,275 level, where close by two resistance levels are located at. However, the yellow metal's price still remains in the borders of a medium scale ascending channel pattern. The commodity price has touched the lower trend line of the channel, which means that the bullion is likely to surge in the near future.
Daily chart
The hourly chart shows a completely contradicting picture, as the bullion seems to have also fluctuated below the medium term pattern's lower trend line, completely ignoring it. It seems that the monthly R1 and the weekly S1 have more say. Moreover, the two resistance levels have managed to hold and the bullion has retreated. Due to that it is possible that the metal's price will retreat down to the weekly S2, which is located at the 1,263.56 level.Hourly chart
Read More: Technical Analysis
Bulls show dominance
SWFX market sentiment remains bearish, as 56% of open positions are short. However, 65% of trader set up orders are to buy.
OANDA Gold traders are neutral regarding the metal, as open positions are 56.60% long on Monday, compared to 51.30% previously. Meanwhile, traders of SAXO bank remain neutral, as 54.93% of open positions are long, compared to 50.61% short positions on Friday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of Gold being above 1,300 in July
© Dukascopy Bank SATraders who were asked regarding their longer-term views on gold between March 24 and April 24 expect, on average, to see the metal near 1,300 in July. Generally, 52% (-2%) of participants believe the price will be above 1,300 in ninety days. Alongside, 37% (+4%) of those surveyed reckon the currencies will trade in the range between 1,100 and 1,300 over the next three months.