- SWFX traders are 54% bullish
- 68% of pending orders in 500-pip range are set to BUY the gold
- Gold price continues the surge
- Upcoming Events: US Unemployment Claims
The yellow metal continued the surge on Thursday morning. However, before 08:00 GMT the metal's price had reached a medium term resistance line. Due to that reason the short term outlook of the commodity price was still unclear. Although, a way to watch for clues is known.
Contracts to purchase previously owned houses increased in November, supported by the job growth in the strengthening US economy. The National Association of Realtors states that pending home sales indicator rose to 109.5 points to show a 0.2% gain for the month. The real estate market restored some momentum after inactivity for much of 2017 due shortage of inventory, which caused an increase in prices, and a lack of both land and labour.
Weekly Unemployment Claims
There is one release, which will occur on Thursday. The weekly Unemployment Claims will be released at 13:30 GMT. However, this data release does not cause a large reaction during volatile trading times. Most likely now, during the winter holiday trading days, there won't be anything notable occurring during the release. Due to that reason it will not be covered live by the Dukascopy team.
XAU/USD approaches resistance
As most financial instruments that are denominated against the US Dollar, gold prices have surged. On Thursday morning the commodity price was already approaching an upper trend line of a medium scale channel up pattern. The price was guided to that trend line by a junior channel up pattern.
Due to that reason the metal's price should be watched carefully. An encounter with the mentioned trend line might turn out into a new short term trend, which might take any direction.
The metal might decline down to the 55-hour SMA, begin a consolidation or continue the surge. In short, watch for clues.
Hourly Chart
The daily chart reveals that the surge lasted for the fourth consecutive trading session on Thursday morning. The possibility that the metal will continue the surge for a fifth trading session is unlikely. The reason for that is the simple understanding of the probability theory in regards to historical analysis. Such surges just don't occur.
Daily Chart
Markets sentiment remains bullish
Traders of Dukascopy are bullish on valuation of the gold, as 54% of open positions are long. Meanwhile, 71% of pending commands are to buy the commodity.
OANDA traders are bullish, as 61% (-2%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are almost neutral, as 52% (-6%) of open positions are long.