- SWFX traders are 51% bullish
- 68% of pending commands are to buy the metal
- The bullion opened at 1,261.56
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Upcoming Events: US Unemployment Claims; Philly Fed Manufacturing Index
The yellow metal has booked a session of one of its largest gains in the recent history. However, signs show that the surge is not over. The bullion retreated during the morning hours of Thursday's trading session. Although, as the day went on a rebound occurred, and one after another attempts at the third weekly resistance near 1,260 mark were made.
Crude oil inventories in the United States dropped less than expected last week, a weekly report showed on Wednesday. The Energy Information Administration reported US crude stockpiles fell 1.8M barrels in the week ending May 12, following the preceding week's drop of 5.2M barrels and falling behind expectations for a 2.5M-barrel decline. US production fell 9K barrels per day to 9.305M barrels per day, the first drop in 13 weeks. Nevertheless, the production levels remained below the EIA's 2017 production target of 9.31M barrels per day.
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Upcoming events: Unemployment and Philly Fed
There will be no coverages of US data sets during today's trading session. However, some events to watch out for are scheduled for the day. At 12:30 GMT the weekly unemployment claims will be published. Moreover, at that time the Philly Fed Manufacturing Index will be out.
Read More: Fundamental Analysis
Gold retreats after massive gains
On Thursday morning the yellow metal's price was in a retreat, as it had failed to break the resistance put up by the weekly R3, which is located at the 1,261.72 level. However, this retreat comes after scoring massive gains. During Wednesday's trading the bullion gained more than 2% and 2500 base points. Due to that it is normal that a period of consolidation is occurring. However, from a technical perspective on the daily chart gold is still set to gain additional ground in the near future, as the weekly R3 is a lone resistance.
Daily chart
The hourly chart shows that the bullion is not relenting in its efforts to break through the resistance of the weekly R3, as at 9:00 GMT the third attempt was in motion. It is most likely that the resistance will be broken sooner or later, as the volatility has disappeared, signaling an upcoming move.Hourly chart
Read More: Technical Analysis
Bulls dominate
Traders are almost neutral in regard to the metal, as 51% of open positions are long. However, 68% of trader set up orders are to buy.
OANDA Gold traders have decreased their bullish outlook, as open positions are 66.86% long on Thursday, compared to 76.06% previously. Meanwhile, traders of SAXO bank have done the same, as 53.62% of open positions are long, compared to 59.39% positions on Wednesday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being below 1,350 in August
© Dukascopy Bank SATraders who were asked regarding their longer-term views on gold between April 18 and May 18 expect, on average, to see the metal near 1,350 in August. Generally, 48% (-2%) of participants believe the price will be above 1,350 in ninety days. Alongside, 35% of those surveyed reckon the metal will trade in the range between 1,200 and 1,350 over the next three months.