- SWFX traders are 53% bullish
- 53% of pending orders in 500-pip range are set to SELL the gold
- Pair trades slightly below 100-day SMA
- Upcoming Events: Silent Monday
Due to escalation of the Catalan crisis, demand for the yellow metal increased and the pair returned back to the weekly PP near 1,274.00. However, this short term recovery should not to change the general projection, according to which the pair is expected to reach the lower edge of a senior ascending channel.
The Commerce Department revealed that the US gross domestic product marked a 3.0% yearly growth pace in the third quarter, fueled by higher business investment, while consumer spending growth eased slightly as incomes were hurt by hurricanes. Separate report showed that the US consumer sentiment remained at lofty levels over the course of October and was expected to improve further. Meanwhile, economists anticipate the Fed to raise rates one more time in December.
Quiet Monday
As it frequently happens on Monday, there are no data releases planned for today that might notably affect valuation of the given rate.
XAU/USD goes up amid Catalan crisis
From technical perspective, the pair had all means to reach the bottom trend-line of a dominant ascending channel. A release of better than expected information about the US GDP growth was projected to give an additional stimulus. However, a declaration of independence by the Catalan parliament and subsequent sack of the regional government by Spanish PM spiked demand for gold. As a result, the new trading session the pair started at the updated weekly PP at 1,274.04. As this barrier is additionally secured by the 55- and 100-hour SMA, the exchange rate is expected to resume movement to the south, trying to reach the weekly S1 at 1,264.23. Fundamental background, generally, supports strengthening of the Dollar. But in the meantime, North Korean and Catalan geopolitical risks might provoke short-term recoveries of the yellow metal.
Hourly Chart
At the moment, the pair is located a little bit below the 100-day SMA and the updated weekly PP. A combination of these barriers as well as general fundamental background suggests that the rate is going to continue to move in the southern direction at least in next couple of days.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are neutrally bullish on valuation of the gold, as 53% of open positions are long. Accordingly, 53% of pending commands are to buy the commodity.
OANDA traders are bullish, as 66% (-4%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 58% (-2%) of open positions are long.