- SWFX traders are 54% bearish
- 50.41% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,282.44
- Upcoming Events: US Retail Sales; US Empire State Manufacturing Index; US Import Prices
The yellow metal is declining, as expected. However, the next target of the metal's fall has already been spotted. First of all there is likely going to be a pause because of an hourly support. Secondly the daily chart shows that it might go as low as 1,265.
The Labour Department revealed that the US Consumer Price Index surged 0.1% over the course of July, missing expectations for a 0.2% rise. Despite the muted increase in consumer prices, some economists remained convinced that the expansion was affected by transitory factors. Furthermore, the Federal Reserve kept considering the key interest rate hike by the end of this year, albeit the decision would depend on further inflation growth pace.
US Retail Sales and friends
From a fundamental perspective on Tuesday the financial markets will be affected by the US data sets, which will be published at 12:30 GMT. At that time the US Retail Sales and Core Retail Sales will be in focus. In addition, the retail sales data will be released together with the Empire States Manufacturing Index and the US Import Prices. The data release is scheduled to be covered by the Dukascopy Research team on the bank's live webinar platform.
XAU/USD approaches 1,270 mark
The decline of the commodity price continues, as expected. The bullion is reaching for the 1,270 mark, which it will most likely reach during Tuesday's trading session. However, just above that level the support of the 200-hour SMA was located at the 1,271 level on Tuesday morning.
In addition, it could be observed that the SMA is not likely to move, as it had set a horizontal direction. It can be expected that the bullion will retreat down to this support level. However, the afterwards direction is likely going to be dictated by political events and this weeks scheduled events like the release of the FOMC meeting minutes.
Hourly Chart
The Daily chart reveals that, if the 200-hour SMA is passed, the commodity price will fall down to a combined support of the ascending long term channel and the weekly S1 near the 1,265 mark.Daily Chart
Markets inclined to the bullish side
Traders of Dukascopy remain in the neutral zone, as 54% of open positions are short. Meanwhile, in regards to the pending commands, neutral sentiment has crept in, as orders are neutral.
OANDA Gold traders are almost neutral, as open positions are 51.35% long. In addition, SAXO bank traders also remain close to being neutral, as 50.90% of open positions are long.