- SWFX traders are 52% bullish
- 83% of pending orders in 500-pip range are set to BUY the gold
- Gold price falls from triangle pattern by 0.9%
- Upcoming EventsUS Unemployment Claims, Core PCE Price Index, Personal Spending, Chicago PMI
Publication of information on the US GDP that matched with the breaking point of a little symmetrical triangle led to 0.9% drop of the yellow metal's price. Today the pair is expected to reach the bottom boundary of a medium ascending channel and with support provided by the monthly PP resume the surge.
The US economy expanded at the fastest pace in three years, as businesses invested more in equipment and inventories, offsetting slackening in inflation. The Commerce Department stated in its preliminary report that the US gross domestic product rose at a 3.3% yearly pace in the September quarter. Donald Trump wants diminished taxes to lift yearly GDP growth to 3% on a regular basis. Though, fiscal stimulus is likely to come only when the economy is at full employment.
An update on unemployment claims
Today there will be a number of American fundamental data releases, including the weekly update on the number of people filing for unemployment benefits, but none of them usually causes substantial price movements.
XAU/USD drops by 0.9% as American GDP grows
An estimated growth of the US GDP expectedly strengthened the buck and reduced demand for the safe haven metal even though the plunge was not expected to be so sharp, as southern side was reliably protected by two moving averages that were moving along the trend-line of a rising wedge formation. As the aggregate market sentiment remains 60% bullish, in medium perspective the pair is expected to continue rising in the one-month long ascending channel. With respect to the current trading session, formation of a minor pennant pattern suggests that the rate is likely to continue moving downwards towards the bottom boundary of the above channel. Nevertheless, a rebound might happen earlier if the pair fails to bypass support zone located between the 1,282.00-1,283.00 levels.
Hourly Chart
Previous trading session represented third day in raw when the pair could not climb above the weekly and monthly R1 at 1,296.00. Even though the pair made a premature drop from rising wedge pattern, it is still fluctuating above the upper boundary of a larger ascending channel. However, a combination of the 55- and 100-day SMAs suggests that the pattern might be broken and the pair could fall to the monthly PP at 1,279.41.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are neutral on valuation of the gold, as 52% of open positions are long. Accordingly, 52% of pending commands are to buy the commodity.
OANDA traders are bullish, as 69% (+5%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 61% (+5%) of open positions are long.