- SWFX traders are 51% bullish
- 54% of pending commands are to buy the metal
- The bullion opened at 1,255.30
- Upcoming Events: German Zew Economic Sentiment; US JOLTS Job Openings; FOMC Member Kashkari's Speech
US private companies created less positions than expected last month; however, a fall in the jobless rate suggested that the labour market remained on a strong footing. The Labour Department reported on Friday that nonfarm payrolls rose 98,000 in March, compared to the previous month's downwardly revised gain of 219,000. Meanwhile, analysts expected the economy to add 174,000 new jobs during the reported period. According to economists, nonfarm employments was hit by the weather-related effects of the big storm that hit the Northeast and Midwest. Meanwhile, the unemployment rate fell to 4.5%, the lowest since May 2007, from 4.7% in February, while analysts anticipated an unchanged reading.
In order to keep up with growth in the US working age population, the economy needs to create at least 75,000 jobs each month. Job growth averaged 178,000 per month in the Q1 of 2017, suggesting that an expected 1.0% GDP rise for the Q1 could be temporary. Average hourly earnings advanced 0.2% in March, after climbing 0.3% in the prior month. Back in March, the Fed raised rates for the first time this year and promised two more hikes in 2017. With the economy expected to bounce back in the second quarter, analysts pegged June for the next rate hike.
Upcoming events: Minor events
Most would say that during Today's trading session nothing is set to occur. However, there are some minor events, which provide a minor possibility to cause volatility in the markets. The JOLTS Job Openings data will be published at 14:00 GMT. At 17:45 GMT the FOMC Member Kashkari will give a speech and might provide signals regarding the future of US monetary policy.
Gold trades in established range
Daily chart: During the early hours of Tuesday's trading session the yellow metal continued to trade just below the resistance cluster, which is located near the 1,257 mark. Just as forecasted, on Monday the bullion bounced between the just mentioned cluster and the support provided by the 50.00% Fibonacci retracement level, which is located at the 1,248.96 mark. The fluctuations should continue. However, it is possible, if the political turmoil persists, that the commodity price breaks the resistance put up by the weekly PP at 1,256.96 and the 200-day SMA, which is located at the 1,256.67 mark.Daily chart
Hourly chart: The hourly chart reveals that there was clearly a rebound against the 50.00% Fibo. Afterwards the rate surged to test the weekly PP at 1,256.96. One notable aspect of the chart is the fact that the bullion ignored the SMAs of the hourly chart. In addition, it has to be mentioned that the weekly level of significance has held its ground three times in just the last 24 hours. Due to that reason a fundamental event surely would be needed to pass the resistance.
Hourly chart
Markets remain bullish
OANDA Gold traders remain with a bullish outlook, as open positions are 57.41% long on Tuesday, compared to 58.77% previously. Meanwhile, traders of SAXO bank have increased the percentage of long positions, as 60.92% of open positions are long, compared to 58.46% on Monday.