- 58% of all SWFX open positions are long
- 70% of pending commands were to buy the metal
- The bullion jumped 1.42% during Thursday's session
- Upcoming Events: Chicago PMI
The US job market finished the year on solid footing as an important indicator of layoffs continued to be near historically low levels, showing a resilient labor market. According to the a Labor Department, national jobless claims declined by 10,000, to 265,000, during the previous week from a six-month high in the prior period. The data tend to fluctuate around the year-end holidays, while the trend reveals managers' reluctance to fire workers as demand remains steady. Filings have been below 300,000 for 95 straight weeks — the longest streak since 1970 and a level economists say is typical for a healthy labor market. Millions of Americans have found work in the past five years, pushing the unemployment rate below 5% and eliciting complaints among businesses about how hard it is to find skilled workers to fill open jobs.
In the meantime, the less volatile four-week average of initial claims, meanwhile, dropped by 750 to 263,000. Continuing jobless claims, in turn, advanced by 63,000 to 2.1 million in the week ended December 17. These claims, reported with a one-week delay, reflect the number of people already collecting unemployment checks.
Chicago PMI
The only market fundamental data release, which is set to occur during today and, in the opinion of the markets, could affect the strength of the US Dollar is the Chicago PMI. The data will be out at 14:45 GMT. However, by judging from previous experience it is unlikely to affect the currency exchange rate. The only way it could do that would be if the Chicago area has experienced a cataclysm, which has not been noticed by anyone.
Gold surges above 1,160
Daily chart: The bullion traded above the third weekly resistance level, which is located at 1,158.04, on Friday morning. Previously, during Thursday's trading session the yellow metal surged from 1,140.68 to end the session at 1,157.02. However, that was not the end of the jump, as it continued into Friday. The metal's price moved during the week against most technical clues. However, our analysts have found that the last two weeks have been a rebound of the commodity price from a large scale descending channel's lower trend line, which is set to continue.Daily chart
Hourly chart: The hourly chart for the yellow metal has a surprise. There is an ascending channel, which has been active since December 15, when the rate touched the large scale descending channel's lower trend line. It can now be seen, how the metal might ascend to the dominating pattern's upper trend line, and, in accordance with the medium term channel, that should occur around January 19 at 1,185.
Hourly chart
Traders still optimistic
OANDA Gold traders remain largely optimistic regarding the Bullion, as open positions were 77% long. Meanwhile, traders of SAXO bank decreased their bullish stance, as today showed 62.19% of traders betting the metal will surge, compared to 64.78% during the previous session.