- SWFX traders are 51% bearish
- 65% of pending commands are to buy the metal
- The bullion opened at 1,258.01
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Upcoming Events: FOMC Member Harker's Speech; FOMC Member Kashkari's Speech; FOMC Member Brainard's Speech; FOMC Member Evans's Speech
The bullion begins the new week with a decline. However, all clues indicate that the gains of the yellow metal are still set to increase. The reason for that is the fact that the bullion is only being held back by one resistance level on the hourly chart.
The number of Americans filing for unemployment benefits dropped unexpectedly last month, official figures revealed on Thursday. The US Department of Labour reported that initial jobless claims fell to 232K in the week ending May 12, following the preceding week's 236K and posting the third consecutive decline. In the meantime, analysts held expectations for an increase to 240K. Claims remained below the 300K level for 115 straight weeks, the longest stretch since 1973.
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Upcoming events: FOMC speeches
There are no significant data sets about to be released that could influence the financial markets. However, the calendar is full of other events. There are four FOMC member speeches scheduled to occur during Monday's session. First of all at 14:00 GMT Harker will give a speech. Afterwards, at 14:30 GMT, Kashkari will speak publicly. At 23:00 GMT Brainard is set to speak, and, last but not least, Evans will give a speech at 01:10 GMT.
Read More: Fundamental Analysis
Gold trades above 1,250 level
The yellow metal remains above the 1,250 level, and it is still positioned for additional gains in the near future. The reason for that is the fact that the bullion is above a strong support cluster, which is located from the 1,243 to the 1,249 levels. Meanwhile, the commodity price faces no resistance up to the 1,269 level, where the monthly PP and a medium term trend line are located at. Most likely the bullion will reach for the resistance and bounce off of it during the next upcoming trading sessions.
Daily chart
The hourly chart shows that after the recent decline to the 1,250 mark the bullion has found support and is surging. However, the surge is being slowed down by the 55-hour SMA, which has entangled the commodity price. Although, if the SMA gets passed, the rate is almost surely going to jump to the 1,270 mark, where nearby is the monthly PP, as there are no other resistance levels up to that mark.Hourly chart
Read More: Technical Analysis
Bulls dominate
SWFX market sentiment remains almost neutral, as 51% of open positions are short. However, 65% of trader set up orders are to buy.
OANDA Gold traders remain bullish, as open positions are 69.03% long on Monday, compared to 69.95% previously. Meanwhile, traders of SAXO bank have done the same, as 55.27% of open positions are long, compared to 55.77% positions on Friday.
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 22 and May 22 expect, on average, to see the metal near 1,350 in August. Generally, 50% (-1%) of participants believe the price will be above 1,350 in ninety days. Alongside, 34% (-1%) of those surveyed reckon the metal will trade in the range between 1,200 and 1,350 over the next three months.