- SWFX traders are 53% bullish
- 58% of pending commands are to buy the metal
- The bullion opened at 1,248.47
- Upcoming Events: US Unemployment Claims
US manufacturing activity rose at a stronger-than-expected pace in February, official figures showed on Wednesday. The Institute for Supply Management reported its Purchasing Managers' Index for the manufacturing sector advanced to 57.7 points last month, the highest level since December 2014, following the previous month's 56.0 points. Meanwhile, analysts anticipated a mild increase to 56.2. Wednesday's survey suggested that the US economy expanded for 93rd straight month. Data also showed the New Orders Index climbed to 65.1 last month from 60.4 in January. However, the Employment Index fell to 54.2 in February from the prior month's 56.1, surpassing analysts' expectations for a decline to 55.9.
Furthermore, the ISM survey showed the Prices Paid Index dropped to 68.0 points last month, meeting forecasts and following the preceding month's 69.0. Although the reading above 50 point level still indicated higher raw materials prices. The figures indicated strong growth of sales and demand, and painted a positive outlook for the manufacturing sector over the upcoming months. After the release, the EUR/USD pair rose from 1.0529 to 1.043. Nevertheless, the Greenback's gains on Wednesday were actually driven mostly by Donald Trump's address to Congress, which boosted investor optimism.
Upcoming events: US Unemployment Claims
As it is accustomed on a Thursday, US Unemployment Claims are set to be published at 13:30 GMT. This data release will be covered by the Dukascopy research team in combination with Canadian GDP data. However, in regards to gold price, it is unlikely that the impact will cause much volatility or offset the bullion from its set course.
Gold volatility increases
Daily chart: On Thursday the yellow metal traded below the combined resistance cluster of the 50.00% Fibonacci retracement level at 1,248.96 and the weekly PP, which is located at 1,247.55 level. Previously, during Wednesday's trading session the bullion traded exactly as forecasted, as the commodity price dropped and rebounded against the strong uptrend line near the 1,236.70 level. On Thursday the trend line's support was located at 1,238.83 level. It is possible that the bullion would once more retreat to find support in the trend line. However, a break of the before mentioned resistance is more likely.Daily chart
Hourly chart: The hourly chart reveals that in a short term the yellow metal's price is dictated by various hourly simple moving averages. Particularly, the commodity price is about to be squeezed in between the 20, 55 and 200-hour SMAs. The 200-hourly is pushing the rite higher from the downside, while the 20-hour SMA provides resistance. In the meantime, the 55-hour SMA is closing in from the upside, as it moves near the 1,248 level, where the weekly PP and 50.00% Fibo are located at.
Hourly chart
Traders still bullish on bullion
OANDA Gold traders also remain bullish on the yellow metal, as open positions are 57.78% long on Thursday. Meanwhile, traders of SAXO bank also remain with a bullish view on the metal, as 61.05% of open positions are long.