- 51% of all SWFX open positions are bullish, as the sentiment is slightly bullish
- Prices fluctuating below 1,320 level on Tuesday morning
- Gold has resumed fluctuating around a certain level
- Economic events to watch over the next 24 hours: S&P/CS 20-City HPI; US PMI Services; US Consumer Confidence; US New Home Sales
As markets expected, the European Central Bank (ECB) kept its key interest rates on hold on Thursday, but signaled that it is prepared to add more monetary stimulus later in the year. The main refinancing rate was left at 0%, whereas the ECB interest rates on the deposit facility and the marginal lending facility remained unchanged at -0.40% and 0.25%, respectively. The central bank slashed its deposit rate deeper into negative territory in March. In a news conference, Mr. Draghi said the Brexit vote had added to "headwinds" for the Euro zone economy that include broader geopolitical uncertainty. Mario Draghi, President of the European Central Bank, also confirmed that the monthly asset purchases of 80 billion euros may run beyond the current deadline of March 2017, if necessary. Furthermore, the central bank's President highlighted that the governing council may provide more stimulus at its next meeting in September, as new post-Brexit forecasts for economic growth and inflation will be available by that time. Meanwhile, analysts polled by Reuters slashed their growth forecast for the Euro zone to 1.3% from 1.6%, but left inflation projections unchanged at 1.3%.
Official figures from the US Department of Labor showed on Thursday that the number of Americans filing for government unemployment benefits in the week ended July 16 dropped to 253,000 from 254,000 registered in the previous seven days, signaling that the labor market continues to improve. In the meantime, market analysts expected initial jobless claims to rise to 271,000 in the reported period, after remaining at a three-month low of 254,000 filings for two consecutive weeks. Last week was the 72nd consecutive week that initial claims were below the 300,000 level, extending the longest streak since 1973. Meanwhile, it is expected that jobless claims data can be volatile in July as automakers begin the process of temporarily shutting down plants to retool them for the new model year. In Michigan last week, applications for jobless benefits decreased 9,600 on an unadjusted basis, while claims in Ohio fell 2,500. Other data on Thursday showed that factory activity in the country's mid-Atlantic region contracted in July, as the Philly Fed Manufacturing Index fell to -2.9 in the reported month, compared to the previous month's reading of 4.7, while analysts anticipated a slight improvement to 5.1 points.
Upcoming fundamentals: US PMI and New Home Sales
On Tuesday data affecting Gold prices will come from the US, as various data releases are set for today. First of all the S&P/CS 20-City HPI index for May is set to be published at 13:00 GMT. Afterwards, at 13:45 GMT US PMI Services for July will be released. Later on in the day the most important data about the US economy will come at 14:00 GMT, as US Consumer Confidence index for July and New Home Sales for June will be published.
Gold ends Monday's trading at 1,314
Daily chart: The yellow metal moved lower on Monday, as it was volatile around the 1,315 mark during the day and ended day's trading session at 1,314.29. However, on Tuesday morning the metal regained some of its previous losses, as the commodity had surged to 1,319.15 by 5:00 GMT and had tested the resistance cluster located from the upside, which is made up from the weekly PP at 1,323.60 and 20-day SMA at 1,324.13. However, daily aggregate technical indicators forecast no change for the bullion today.Daily chart
Hourly chart: The hourly chart shows that the yellow metal fell sharply midnight between Sunday and Monday, as it moved from 1,321 to 1,315 during that hour. Since then gold has been volatile between 1,322 and 1,313 levels. The commodity was bouncing between the upper and lower Bollinger bands for the past 24 hours. However, at 4:00 GMT on Tuesday, the 55 and 100-hour SMAs have moved below the upper Bollinger band and started providing additional resistance pressure on the bullion.
Hourly chart
SWFX sentiment slightly bullish on Tuesday
Meanwhile, OANDA Bank clients are largely bullish with respect to the bullion, precisely in 67.54%. In the meantime, SAXO bank clients are less bullish on the yellow metal, as 63.10% of positions are long.