Gold consolidates above 1,520.00

Source: Dukascopy Bank SA

The surge of the yellow metal has reached the 1,525.00 level, from which it bounced off.

On Tuesday, a consolidation by trading sideways was taking place. Namely, the commodity price fluctuated between the 1,520.00 and 1,525.00 levels.

Economic Calendar Analysis



On Thursday, the US Final GDP will be published at 12:30 GMT. This event could cause a minor move.

The week will end with the US Durable Goods Orders data release at 12:30 GMT. The event will consist of the release of US Durable Goods Orders and US Core Durable Goods Orders.

However, note that during the last six months the markets did not react to the Durable Goods Orders. For example the EUR/USD moved less than 10 pips during the timeframe of ten minutes around the data being released.

XAU/USD short-term forecast

On Tuesday, the yellow metal traded between the 1,520.00 and 1,525.00 levels, where it was consolidating after the most recent surge from the 1,485.00 level.

In general, the metal should wait for the technical support of the hourly simple moving averages to catch up with the metal's price and push it up. Moreover, the consolidation would remove overbought pressure.

On the other hand, a decline down to the SMAs near the 1,515.00 level could take place.

Hourly Chart



On the daily candle chart, the price for gold, despite piercing the lower trend line of the ascending channel pattern, has returned to trade in its borders.

Meanwhile, the support of the 55-day simple moving average was approaching the commodity price from below, near the 1,480.00 level.

Daily Chart


Swiss traders are neutral

On Monday, 51% of open gold position volume on the Swiss Foreign Exchange was in short positions.

By the middle of Tuesday, 53% of open position volume was in short positions.

Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish– 67% of orders were to buy and 33% to sell.

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