- SWFX traders are 51% bullish
- 63% of pending commands are to buy the metal
- The bullion opened at 1,200.00
- Upcoming Events: US Average Hourly Earnings; US Non-Farm Employment Change; US Unemployment Rate
The number of Americans filing for unemployment benefits rose more than expected last week, official figures showed on Thursday. The US Department of Labour reported initial jobless claims rose to 243,000 in the week ended March 3, up from the preceding week's record low of 223,000. Meanwhile, market analysts expected claims would climb to 239,000 claims during the reported week. Last week marked the 105th consecutive week of claims below the benchmark 300,000 level. Analysts state that the US economy is at or near full employment, with companies struggling to find qualified candidates for job openings.
The strong performance of the labour market and rising inflation would probably force the Federal Reserve to raise rates at its next meeting on March 15. The Labour Department said there were no special factors influencing claims data. The four-week moving average of initial claims, considered a better measure of the labour market trends, advanced 2,250 to 236,500 last week. Thursday's report also showed continuous jobless claims dropped 6,000 to 2.06 million in the week ending February 25, while their four-week moving average fell 5,250 to 2.07 million. The US Dollar traded little changed after the release, as investors awaited Friday's NFP report.
Upcoming events: US labor data
During the second part of Friday's trading session, at 13:30 GMT, there will be a package of fundamental data released in the US, which will affect the strength of the US Dollar in the financial markets. The release will consist of US Average Hourly Earnings data, US Non-Farm Employment Change and the US Unemployment Rate. The data release will be covered by the Dukascopy research team on the live webinar platform of the bank.
Gold trades below 1,200
Daily chart: The yellow metal did not reverse its course during Thursday's trading session. Moreover, during the early hours of Friday's session the commodity price positioned itself to lose even more of its value. The metal passed the weekly S2 at 1,199.19, which means that, with the exception of the moving lower Bollinger band near 1,190 level, the closest support level is located at 1,182.37, where the 23.60% Fibonacci retracement level is located at. Further below that the nearest support is the weekly S3, which is located at 1,175.58 level.Daily chart
Hourly chart: The hourly chart shows that the hypothetical long term ascending channel's lower trend line held the line for 12 hours until it was finally passed. However, the half a month old descending channel is still holding, as its lower trend line provides support to the yellow metal and slows down the decline of the commodity price.
Hourly chart
SWFX traders are neutral
OANDA Gold traders have increased their bullish outlook, as open positions are 65.07% long on Friday, compared to 64.34% previously. Meanwhile, traders of SAXO bank have not changed their opinion, as 68.12% of open positions are long, compared to 68.15% on Thursday.