- SWFX traders are 54% bearish
- 58% of pending commands are to buy the metal
- The bullion opened at 1,286.33
-
Upcoming Events: US Building Permits; US Housing Starts; US Capacity Utilization Rate; US Industrial Production
The yellow metal continued the retreat on Tuesday due to fundamental events in the US. Namely, the comments made by the US Treasury Secretary that Donald Trump sees the US Dollar strength as a problem only in the short term strengthened the Buck. As a result the price of the yellow metal declined. However, the surge is still likely to recover.
Manufacturing activity in the New York State fell markedly in April, raising concerns over economic growth in the Q2 of 2017, a survey revealed on Monday. The New York Federal Reserve reported that its Empire State Manufacturing Index came in at 5.2 for April, following the preceding month's reading of 16.4. Meanwhile, market analysts anticipated a slight drop to 15.2 points during the reported month. Data showed that 35% of the survey respondents said that business conditions had improved, while 30% claimed that they has worsened over the reported month.
Watch More: Dukascopy TV
Upcoming events: Various US data
On Tuesday macroeconomic data, which might influence the financial markets will be released in the US. The data will come in in the second half of the day. At 12:30 GMT US Building Permits and Housing Starts data sets will be available. Afterwards, at 13:15 GMT, the US Capacity Utilization Rate and the Industrial Production data will be out. However, only the Building Permits data has historically shown enough strength to make noticeable impact.
Read More: Fundamental Analysis
Gold retreats on Tuesday
After hitting a five month high level the gold price began a period of consolidation, which became a decline due to fundamental events. The main reason for the decline of the bullion's price was the comments made by the Treasury Secretary of the US Steven Mnuchin, who expressed that the US President sees the strong US Dollar only as a problem in the short term. It is most likely that the bullion will continue its surge, as turmoil around the world drives the run to safety. Moreover, a new medium term ascending channel pattern seems to have revealed itself due to the recent decline of the commodity price.
Daily chart
The hourly chart reveals that during the latest decline of the yellow metal the commodity price has passed the support's, which were provided by the 55 and 100-hour SMAs. It is most likely that these levels of significance will hinder the yellow metal in case of a rebound against the 61.80% Fibonacci retracement level, which is located at the 1,278.73 level.Hourly chart
Read More: Technical Analysis
Markets remain neutral
SWFX gold traders remain bearish, as 54% of open positions are short. However, 56% of set up orders are to buy the metal.
OANDA Gold traders remain slightly bullish regarding the metal, as open positions are 52.23% long on Tuesday, compared to 53.14% previously. Meanwhile, traders of SAXO bank remain neutral, as 50.10% of open positions are long, compared to 51.61% short positions on Monday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of Gold being above 1,300 in July
© Dukascopy Bank SATraders who were asked regarding their longer-term views on gold between March 18 and April 18 expect, on average, to see the metal near 1,300 in July. Generally, 53% (+1%) of participants believe the price will be above 1,300 in ninety days. Alongside, 35% (-1%) of those surveyed reckon the currencies will trade in the range between 1,100 and 1,300 over the next three months.