- SWFX traders are 53% bearish
- 56% of pending commands are to buy the bullion
- The metal's price started the Thursday's trading at 1,260.51
- Upcoming Events: US Durable Goods Orders, Unemployment Claims
The bullion has surged above the 1,260 mark. The reason for that is the FOMC Statement. The fundamental change in the US Monetary Policy has once more caused huge changes in the financial markets. Due to that reason a technical review is needed.
Monday's Markit survey showed that the preliminary PMIs for the US manufacturing and services sectors almost matched analysts' forecasts and had little initial impact on the USD/JPY currency pair. Just after the data were released, the US Dollar edged slightly higher against the Yen to 110.954. Markit revealed that the index for services activity in the United States came in at 54.2 in July, unchanged from the previous month, while the Manufacturing PMI rose to 53.2, above forecasts for a 52.3 reading. Sufficiently strong figures suggested that the country's pace of economic growth gained momentum, pointing to some signs for further expansion.
US Durable Goods Orders
At 12:30 GMT the Dukascopy research team will go live on the bank's webinar platform to cover the release of the US Durable Goods Orders and Unemployment Claims data sets. Most likely the data releae will cause volatility in the financial markets.
XAU/USD propelled higher by Fed
Most patterns and technical analysis in general has become obsolete on the XAU/USD chart. As the FOMC Statement was released, the US Dollar fell all across the trading board. In regards to the price of the yellow metal, the commodity price jumped from levels below the 1,250 mark and reached above the 1,264 level. Although a surge was previously expected, such sharp jump was not expected. Due to the changes in the fundamental situation first a consolidation period will begin, which means that the metal's price might decline by the end of Thursday's trading session. Afterwards the Dukascopy Research team will do a full review of the technical situation on the metal's charts.
Hourly Chart
The daily chart reveals no additional information regarding the short term perspective. However, one can see that the surge is most likely going to continue, as there are no initially noticeable resistance lines, which could stop the bullion.Daily Chart
SWFX traders remain almost neutral
Traders of Dukascopy are neutrally bearish, as 53% of open positions are short. Meanwhile, once more the dominant bullishness has returned to the pending commands, as 56% of set up orders are to buy the metal.
OANDA Gold traders remain with a strong bullish outlook, as open positions are 68% long on Thursday. In the meantime, SAXO bank sentiment is 56% bullish.