- SWFX traders are neutral
- 62.24% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,270.31
- Upcoming Events: US Core PCE Price Index; US Personal Spending; ISM Manufacturing PMI
The surge of the bullion continues, as the metal has established itself firmly at the 1,270 mark. However, a short lived period of consolidation is still possible, as the metal's price is being kept down by the upper trend line of a medium term ascending channel pattern.
The US National Association of Realtors reported that the Pending Home Sales Index rose twice as much as anticipated by a seasonally adjusted 1.5% in July, following an upwardly revised 0.7% drop in the prior month. Nevertheless, the strong increase offset previous declines only partially and suggested that existing home sales are likely to increase in the near term, as fewer available properties forced buyers to act immediately. Analysts expect housing sector to continue recovering after being stymied by the lack of homes, which led to higher prices.
Minor US data sets
In regards to macroeconomic data releases, on Tuesday there is nothing notable enough to be covered on the live webinar by the Dukascopy Research time, while affecting the US Dollar and commodities. However, there are various minor data releases scheduled, which might affect the strength of the US Dollar, if they are released very different from the average market forecasts. At 12:30 GMT the US Core PCE Price Index and the US Personal Spending data will be published. Afterwards, markets will watch out for the release of the ISM Manufacturing PMI.
XAU/USD targets 1,280 mark
After a notable surge on Friday, the last day of July the bullion spent in a steady horizontal movement against the American Dollar. Most likely, today the pair will continue to climb upstairs, supported by the accompanying 55-hour SMA from the bottom. In addition, the surge might be accelerated by announcement of the US ISM Manufacturing PMI at 14:00 GMT. This scenario is supported by the fact that the pair faces no resistance levels up until the combination of the 61.80% Fibonacci retracement level at 1,278.96 and the weekly R1 at 1,279.64. And barrier, most probably, will cause a trend reversal at least in the short-run. By the way, this resistance level coincides with the breakout point of a symmetrical triangle that has recently formed within the two week long ascending channel.
Hourly Chart
On the daily chart all of the moving daily levels of significance are located far below the commodity price. Due to that reason one can easily watch how the pair is surging almost unopposed on the daily chart.Daily Chart
SWFX traders are once more neutral
Traders of Dukascopy are neutral, as 50% of open positions are long. Meanwhile, the bulls are dominating in regards to the set up order proportion, as 62% of set up orders are to buy the metal, compared to 54% previously.
OANDA Gold traders remain with a strong bullish outlook, as open positions are 63% long. In the meantime, SAXO bank sentiment is 57% bullish.