- SWFX traders are 52% bullish
- 61% of pending commands are to buy the metal
- The bullion opened at 1,232.14
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Upcoming Events: US Building Permits; US Housing Starts; US Capacity Utilization Rate; US Industrial Production
Although the bullion encountered resistance on Monday, on Tuesday the metal continues on its path higher. Moreover, the resistance of the 100-day SMA, on Tuesday began to provide support to the commodity price, which can be clearly observed on the daily chart. Meanwhile, the medium term patterns have not been broken. Due to these factors combined a surge is expected to continue.
Manufacturing activity in the New York state deteriorated unexpectedly in May, falling into the negative territory for the first time since October, official figures revealed. The regional Federal Reserve reported on Monday that its Empire State Manufacturing Index came in at –1.0 in the reported month, following the preceding month's 5.2 points. Meanwhile, market analysts anticipated a climb to 7.2 in May. The drop may be a sign of an activity slowdown in the manufacturing sector.
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Upcoming events: Loads of US Data
In the second half of Tuesday's trading session US data will start coming in. First of all at 12:30 GMT the Dukascopy research team will cover the release of the US Building Permits data and the Housing Starts. Some consider the Building Permits data a high impact release. Later on in the day, at 13:15 GMT the US Capacity Utilization Rate and the Industrial Production data will be out.
Read More: Fundamental Analysis
Gold finds new support
Although on Tuesday morning the yellow metal's price was lower than the scored heights during Monday's trading session, the bullion continued to score gains. Moreover, on the hourly chart a new development was giving a positive signal for the commodity price. The 100-day SMA had begun to provide support rather than resistance to the commodity. It is most likely that the bullion will reach for the next resistance level, as the weekly R1 is located at the 1,239.37 level. However, the developments of the price search afterwards is unclear for now.
Daily chart
On the contrary to many other pairs, where the hourly charts were broken, the yellow metal's ascending channel, although pierced a little bit, is still holding. It remains firmly aimed at the first weekly resistance, which is most likely going to be reached this week.Hourly chart
Read More: Technical Analysis
Bulls dominate
Traders are bullish in regard to the bullion, as 52% of open positions are long. In addition, 61% of trader set up orders are to buy.
OANDA Gold traders remain bullish, as open positions are 76.23% long on Tuesday, compared to 75.16% previously. Meanwhile, traders of SAXO bank have a less positive outlook, as 65.74% of open positions are long, compared to 65.99% positions on Monday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being below 1,350 in August
© Dukascopy Bank SATraders who were asked regarding their longer-term views on gold between April 16 and May 16 expect, on average, to see the metal near 1,350 in August. Generally, 50% of participants believe the price will be above 1,350 in ninety days. Alongside, 35% (+1%) of those surveyed reckon the metal will trade in the range between 1,200 and 1,350 over the next three months.