- SWFX traders remain bearish with 53% of open positions being short
- 53% of pending commands are to buy the bullion
- The metal's price opened the day's trading at 1,287.47
- Upcoming Events: US Unemployment Claims
The yellow metal continues to extend its decline into Thursday's trading session. All eyes are on where the metal will find support to continue the surge, as on Thursday morning the commodity price was located in the middle of the medium term ascending channel pattern.
Job openings in the United States hit a record high in April and some businesses reported a shortage of qualified workers to fill job openings, pointing to the continued tightening of the labour market. The Job Openings and Labour Turnover Survey, or JOLTS, released by the Labour Department on Tuesday showed that the number of job openings rose 259K to a seasonally adjusted 6.0M in April, a new all-time high, following the preceding month's downwardly revised reading of 5.79M and surpassing analysts' expectations for 5.65M openings, with the largest increase occurring in accommodation and food services.
US Unemployment Claims
Relevant to the yellow metal's price on Thursday there will be only one fundamental data release. As every Thursday, the US Unemployment claims will be published at 12:30 GMT. However, at that time the ECB press conference will take place. In the case of a run from the Euro, not only the US Dollar would surge, but some would choose to rather invest in the security of the bullion, which will increase the demand for it.
Gold extends losses
The decline of the yellow metal's price has extended itself, as the bullion continue to search for a strong enough support level to continue the surge. On Thursday morning the commodity price still remained in the middle of the medium term ascending channel pattern. There the metal faced the resistance of the 55-hour SMA at the 1,289.49 mark, while, meanwhile, being supported by the weekly R1 at 1,286.87. It is highly possible that the bullion will remain below the 1,300 mark until additional support is found. The additional support could come in the form of the 100-hour SMA, which on Thursday morning was located at the 1,282.73 level. In addition, the just mentioned SMA was supported by the lower Bollinger band of the hourly chart.
Hourly Chart
By judging while looking at the daily chart, some additional statements can be made. It seems that the fall has stopped, as the lowest reached level of Thursday's trading until the morning hours of the day was higher than the low level of Wednesday. In some cases this is a clear preceding sign of a rebound.Daily Chart
Bears increase influence
SWFX traders are clearly bearish, as 53% of open positions are short on Thursday. Meanwhile, 53% of trader set up orders are to buy the metal.
OANDA Gold traders remain bullish, as open positions are 55.93% long on Thursday, compared to 51.75% previously. Meanwhile, traders of SAXO bank remain clearly on the bearish side, as 55.67% of open positions are short, compared to 56.54% on Wednesday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being near 1,350 in September
Traders who were asked regarding their longer-term views on gold between May 8 and June 8 expect, on average, to see the metal just below 1,350 in September. Generally, 44% of participants believe the price will be above 1,350 in ninety days. Meanwhile, there are those, who expect the price to be below 1,300. Namely, 34% (+6%) of respondents believe that the price will be below the mentioned mark.