- SWFX traders are 54% bearish
- 57.34% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,290.75
- Upcoming Events: Empty Monday's session
The 1,290 mark has been hit. More gains in the short term is not expected, as the bullion is retreating on Monday. The metal has hit the upper trend line of a dominant channel, which has been strengthened by the first monthly resistance at the 1,292.91 mark.
The Labour Department revealed that the US Consumer Price Index surged 0.1% over the course of July, missing expectations for a 0.2% rise. Despite the muted increase in consumer prices, some economists remained convinced that the expansion was affected by transitory factors. Furthermore, the Federal Reserve kept considering the key interest rate hike by the end of this year, albeit the decision would depend on further inflation growth pace.
Quiet session
There are no data releases scheduled for the rest of the Monday's trading session. Due to that reason traders should better look out from political and international turmoil, which actually drove the price of the metal to the 1,290 level.
XAU/USD encounters dominant resistance
As forecasted, the price of the yellow metal reached the 1,290 mark on Friday. However, the surge has most likely ended in the medium term. The commodity price has reached and bounced off the upper trend line of a dominant ascending channel pattern near the 1,293 mark. The trend line was and still is supported by the various term levels of significance, which are located from the 1,290 to 1,295 levels. In addition, during the bounce off the junior ascending pattern was broken. Most likely gold price will continue to decline and form a short term descending pattern, which will guide the metal to the support of the dominant pattern.
Hourly Chart
The Daily chart reveals that the decline might be stopped at the 1,280 mark. At that level the new weekly pivot point is located together with the previously broken long term massive scale descending channel pattern's upper trend line.Daily Chart
Markets inclined to the bullish side
Traders of Dukascopy remain in the neutral zone, as 54% of open positions are short. Meanwhile, in regards to the pending commands, bulls are dominating with 57% of orders set to buy the metal.
OANDA Gold traders are neutral, as open positions are 50% long. In the meantime, SAXO bank traders remain close to being neutral, as 51.83% of open positions are long.