- SWFX market sentiment is 72% bullish
- 52% of pending orders in 1000-pip range are set to BUY Gold
- Watch out for Canadian data at 12:30 GMT
On Friday, gold prices remained at the same level. Although, the price was struggling with a combined resistance level at the 1,180. mark. Namely, the 55-hour SMA and a monthly pivot point were providing resistance to the bullion's price.
The Energy Information Administration released Crude Oil Inventories data that came better-than-expected of 6.8 Million to forecast –2.6 Million. This data set is primary gauge of supply and demand imbalances in the market. The data may affect changes in production levels and price volatility.
Kevin Nicholson, the chief market strategist at RiverFront Investment Group said: "Really, everything today has been playing on the idea of the trade tensions and Turkey. Obviously crude is down today because U.S. stockpiles rose over the last week to their highest level since March 2017".
Canadian CPI ends the week
Friday's economic calendar has only one notable data release on it. Although, it is a Canadian one that is only going to influence the Canadian Dollar pairs. Namely, the Canadian CPI data will be released at 12:30 GMT.
The event will be covered by the Dukascopy analysts on the bank's live webinar platform. The cover will begin at 12:00 GMT. This time it is early, as traders will be shown, how to prepare for a data release.
XAU/USD waits breakout from 55-hour SMA
The yellow metal edged higher early on Thursday, but this slight appreciation was stopped by the monthly S2 and the 55-hour SMA at 1,180.00.
As apparent on the chart, the pair was testing a short-term trend-line early on Friday. If this line is breached together with the 55-moving average, bulls are likely to increase in strength which in turn would result in a surge up to the breached senior channel and the 200-hour SMA located near 1,195.00.
Conversely, in case this expected breakout fails to occur, Gold should remain trading along the 55-hour SMA without stepping over the monthly S3 at 1,160.00.
Hourly Chart
By the middle of Thursday's trading session the bullion had lost 15.00% since the middle of April. Moreover, the recent breaking of the drawn dominant descending channel pattern has left the metal's price without any notable support.
Namely, the metal was set to be supported only by the third monthly support pivot point at the 1,147.00 mark.
Daily Chart
Massive amount of long gold positions
72% of SWFX market traders are going long on the pair.
Meanwhile, it was previously thought that the domination of pending sell orders in the market might push the price down. Although, on Friday the orders were neutrally shifted to the buy side, as 52% of all pending orders were set to buy the metal.
OANDA traders are also bullish on the commodity with 77% of open positions being long today.
Meanwhile, SAXO Bank traders have reopened their long positions, as once more the sentiment is above 70%. Namely, 71% of Saxo traders are long on the metal.