- SWFX market sentiment is 75% bullish
- Pending orders in the 1000-pip range are set to buy in 74% of all cases
- No data releases on Monday
Gold prices have booked a new high level, as on Friday they finally reached above the 1,240.00 level. Although, on Monday morning the commodity price was back below the 1,230.00 mark.
Latest Fundamental Event
Oil prices increased volatility during the release of the US Crude Oil Inventories at 14:30 GMT. Initially, the price dropped by nearly 20 base points. However, immediately buy orders of the retail sector went through and pushed the price higher by 44 base points.
The Energy Information Administration released the US Crude Inventories data that came out lower-than-expected of 6.7M, compare to forecasted 3.6M.
"The report is mixed due to the dueling large build in crude oil inventories and steep decline in gasoline and distillate fuels," said John Kilduff, a partner at Again Capital Management in New York.
No notable data on Monday
On Monday, there are no data releases scheduled to occur that might impact the financial markets.
Meanwhile, the week's calendar will be reviewed during the weekly Poking the Economic Calendar webinar at 12:00 GMT.
XAU/USD short term forecast
In regards to the near-term future, most likely, the gold will trade upwards to break the 100-hour and 55-hour SMAs resistances. The 200-hour simple moving average will support the surge during the day.
However, the yellow metal could pass through the support of the 200-hour SMA to pass through the monthly R2 at 1,227.33 on Monday.
Hourly Chart
On the daily chart it can be observed that the long term ascending channel is holding.
In addition, note that at the 1,245.00 level a 38.20% Fibonacci retracement level is providing resistance to the commodity price.
Daily Chart
Long sentiment increases on Monday
On Monday, 75% of traders were long on the yellow metal. Previously, 71% of trader open positions were long.
Meanwhile, trader set up pending orders are still mostly set up to buy more gold. 75% of all orders are set to buy.
As the yellow metal signals that it is set to gain new high levels, even more traders open long positions. In addition, retail traders are expected to buy even more, as 75% of trader pending orders are set to buy.