- SWFX traders are 51% bullish
- 59% of pending commands are to buy the bullion
- The metal's price opened the day's trading at 1,222.36
- Upcoming Events: US Factory Orders; FOMC Meeting Minutes
The drastic fall of the bullion was stopped by support at the 1,220 mark. As a result a rebound commenced on Tuesday morning. However, how long the surge of the commodity price will continue, is still unclear, and various clues need to be looked at.
US manufacturing activity rose more than expected last month, official figures showed on Monday. The Institute for Supply Management reported its Purchasing Managers' Index for the manufacturing sector increased to 57.8 in June, up from 54.9 registered in the preceding month. That marked the strongest reading since August 2014, reflecting improvements in economic conditions both within the country and abroad.
FOMC Meeting Minutes in focus
The economic calendar for Tuesday is empty. However, it is highly unlikely that any data event would grab the attention of the markets prior to what is scheduled for Wednesday. At 18:00 GMT the FOMC Meeting Minutes will be published. That is set to be the main focus of the day. In addition, at 14:00 GMT on Wednesday the Factory Orders will be out.
XAU/USD reaches 1,220 level
As it was expected, the bullion's price continued to plummet during Monday's trading ssession. However, the situation changed on Tuesday morning. The commodity price found support at the first monthly support level, which is located at the 1,220.50 mark. For this reason, the metal seems to have a rather larger range for the consolidation period, which seems to be beginning. Meanwhile, the 55- and 100-hour SMAs are moving in from the upside at 1,235.38 and 1,241.65, respectively. The SMAs are too distant to be considered a notable resistance on Tuesday. However, additional clues in regards to closer resistance levels could be observed on the daily chart.
Hourly Chart
On the daily chart there is additional information, in regards to the support provided to the yellow metal. The lower Bollinger band of the daily timeframe is located at the 1,222.26. In addition, the 38.20% Fibonacci retracement level is at the 1,219.36 level. Meanwhile, by adding additional pivot points, one can observe that the weekly second support level is located at eh 1,223.67 mark. However, it has not shown strength that is capable of affecting the metal's price.Daily Chart
SWFX market is almost neutral
Traders of Dukascopy are neutral bullish, as 51% of open positions are long on Tuesday. Meanwhile, 59% of trader set up orders are to buy the commodity.
OANDA Gold traders have increased their bullish outlook, as open positions are 72.85% long on Tuesday, compared to 66.97% on Monday. Meanwhile, traders of SAXO have done the same, as 65.74% of open positions are long. Previously 63.60% 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 by October. Generally, 42% (-1%) of participants believe the price will be above 1,350 in ninety days. Meanwhile, most people see the bullion in the 1,350-1400 range, as 27% (+1%) see the metal in that range.