- SWFX traders remain bearish with 52% of open positions being short
- 62% of pending commands are to buy the bullion
- The metal's price opened the day's trading at 1,257.95
- Upcoming Events: US Core Durable Goods Orders
The yellow metal has tumbled down by 1.5% during the middle of the morning analysis creation. For the reason of the fall one does not have to look far, as there is no clear reason and searching for it is a waste of time. "Expert" portals continue to cite various reasons for the fall. However, one thing is clear. Someone dumped a lot of gold.
The number of Americans filing for unemployment benefits rose slightly last week, official figures revealed on Thursday. The US Department of Labour reported that initial jobless claims rose to 241K in the week ended June 16, following the preceding week's upwardly revised 238K but meeting market analysts' expectations. Initial claims remained below the 300K level for the 120th week, the longest streak since 1973. The four-week moving average of initial jobless claims climbed 1.5K to 244,750 last week, the highest level since April.
US Durable Goods Orders
US Core Durable Goods Orders will be in focus at 12:30 GMT. This data release will be covered by the Dukascopy Research team live on the bank's webinar platform.
Gold plummets unexpectedly.
The Technical Analysis part of the Dukascopy website shows, what was expected at the start of the day from the technical of the yellow metal. However, the metal crashed afterwards. It has broken various patterns. Due to that reason a full review will be done soon. Most likely a review for the precious metals will be available on Tuesday morning in the Trade Pattern Ideas section.
Hourly Chart
Meanwhile, while looking at the daily chart it can be observed that the fall of the bullion passed the support of the long term ascending channel. That means that the closest support to the metal is the 200-day SMA at the 1,238 mark. It can also be considered as strengthened by the weekly S2 at 1,234.59 and the lower Bollinger band at 1,234.90.Daily Chart
SWFX traders contradict others
SWFX traders remain neutral bearish, as 52% of open positions are short on Monday. Meanwhile, 62% of trader set up orders are to buy the metal.
OANDA Gold traders have once more increased their bullish outlook, as open positions are 68.37% long on Monday, compared to 70.57% on Friday. Meanwhile, traders of SAXO have decreased their long position amount, as 57.49% of open positions are long. Previously 60.73% of the bank's traders were long.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being above 1,300 in three months
Traders who were asked regarding their longer-term views on gold during the last month expect, on average, to see the metal around 1,300 in the second half of September. Generally, 39% (+2%) of participants believe the price will be above 1,350 in ninety days. Meanwhile, most 24% people see the metal trading in the range between 1,350 and 1,400.