- SWFX traders remain bearish with 55% of open positions being short
- 60% of pending commands are to buy the bullion
- The metal's price opened the day's trading at 1,254.54
- Upcoming Events: FOMC Member Dudley's Speech; FOMC Member Evans's Speech; German Buba President Weidmann's Speech
The bullion has passed the support cluster, which held back the decline of the precious metal for more than two consecutive trading sessions. The commodity price is set to decline, as it can be seen that the metal's price faces little support until the 1,240 mark.
US homebuilding activity rose slowed unexpectedly last month, official figures revealed on Friday. The Commerce Department reported that housing starts fell 5.5% to a seasonally adjusted annual pace of 1.09M units, the lowest since September 2016, following the preceding month's downwardly revised pace of 1.16M and falling behind analysts' expectations for decline to 1.23M-unit pace. On an annual basis, homebuilding dropped 2.4%.
Banker speeches
As on any other Monday, the schedule is almost empty in regards to fundamental events. However, there are speeches of various central bankers scheduled for the day. At 12:00 GMT the FOMC member Dudley is set to speak publicly. Afterwards at 23:00 GMT FOMC member Evans will give a speech.
Gold passes strong support level
The bullion is set to fall below the 1,245 mark at some time during Monday's trading session. That is being indicated from a technical perspective by the fact that the commodity price has passed the strong support level of the monthly pivot point, which is located at the 1,253 mark. The support of the monthly PP held the bullion from falling below the 1,250 mark more than 40 hours. It is most likely that the commodity price will decline below the 1,245 level, as until that mark there are no notable support levels, which could hinder the fall. Meanwhile, it has to be noted that the commodity price is approaching the support of a long term pattern. The lower trend line of the dominant pattern on Monday morning was located just above the 1,240 mark.
Hourly Chart
The daily chart shows that there are additional levels of support, which have to be taken into account. First of all the 100-day SMA is moving in on the commodity price from the downside at the 1,248 mark. Meanwhile, the 1,250 mark might also provide additional support, as it has done so historically.Daily Chart
SWFX traders contradict others
SWFX traders remain bearish, as 55% of open positions are short on Friday. Meanwhile, 60% of trader set up orders are to buy the metal.
OANDA Gold traders remain bullish, as open positions are 56.33% long on Monday, compared to 56.87% on Friday. Meanwhile, traders of SAXO are once more bullish, as 52.96% of open positions are long.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being above 1,300 in three months
Traders who were asked regarding their longer-term views on gold during the last month expect, on average, to see the metal around 1,315 in the second half of September. Generally, 38% (+1%) of participants believe the price will be above 1,350 in ninety days. Meanwhile, an astonishing 28% (+2%) are voting for tight range between the 1,300 and 1,350 marks.