- SWFX traders are 52% bullish
- 59% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,223.95
- Upcoming Events: US Factory Orders; FOMC Meeting Minutes
On Wednesday morning the yellow metal's price remained near the 1,225 mark. However, various new technical information had come in. The commodity price can be pinpointed in the borders of three various channel patterns, starting from the dominant medium term descending channel pattern and ending with the two short term ascending channels.
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 main focus on Wednesday will be at the publication of the FOMC Meeting Minutes. To be exact, at 18:00 GMT the FOMC Meeting Minutes will be published. That is set to be the main focus of the day. Meanwhile, before that, at 14:00 GMT, the US Factory Orders data will be out.
XAU/USD faces resistance
The yellow metal finally encountered the resistance of the 55-hour SMA just below the 1,230 mark. The resistance level managed to force the bullion into a short term retreat. However, the retreat was unlikely going to last. After a review of the metal's chart it was discovered that the bullion is in a medium term descending channel pattern. The rebound, which occurred on Monday was not only caused by the monthly S1 at 1,220.50, but also the lower trend line of the channel down pattern. Due to that reason it can be assumed that the bullion's price will head for the upper trend line of the channel. In accordance with this hypothesis, not only the 55-hour SMA should be broken. The 100-hour SMA near the 1,235 mark would also be passed.
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 1,221 mark. 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 the 1,223.67 mark. However, it still 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 52% of open positions are long on Wednesday, compared to 51% on Tuesday. Meanwhile, still 59% of trader set up orders remain to buy the commodity.
OANDA Gold traders have not changed their bullish outlook, as open positions are 72.67% long on Wednesday, compared to 72.85% on Tuesday. Meanwhile, traders of SAXO have done the same, as 65.88% of open positions are long. Previously 65.74% 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, 40% (-2%) 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% see the metal in that range.