- 53% of all SWFX open positions are short
- Gold gained 2.24% over FOMC statements on Wednesday
- Economic events to watch over the next 24 hours: US Flash Manufacturing PMI (Sep)
The number of Americans filing for unemployment benefits fell sharply last week, official figures revealed on Thursday. According to the US Department of Labor, initial claims for jobless benefits dropped 8,000 to a seasonally adjusted rate of 252,000 in the week ended September 16, touching the lowest level since mid-July. Meanwhile, market analysts expected initial jobless claims to rise to 261,000 last week from the preceding week's 260,000. Filings for US unemployment benefits remained below the 300,000 level for the 81st consecutive week, the longest streak since 1973. The four-week moving average of initial claims, considered a better measure of labor market trends, declined 2,250 to 258,500 last week. The US Dollar Index, which measures its strength against a trade-weighted basket of six major currencies, fell 0.45% to 95.03, the lowest level since September 12, despite upbeat data. Other data released by the National Association of Realtors (NAR) showed sales of previously owned US homes unexpectedly declined to a seasonally adjusted annual rate of 5.33 million units in August, following the previous month's 5.38 million unit pace and falling behind the 5.45 million unit rate market forecast. The drop was mainly driven by a shortage of properties for sale as it lifted home prices higher.
Crude oil inventories in the United States fell sharply last week, official data showed on Wednesday. According to the Energy Information Administration's weekly report, US crude stocks dropped 6.2 million barrels to a total of 504.6 million in the week ended September 16, compared to the preceding week's decline of 0.6 million barrels, while market analysts anticipated a rise of 3.2 million barrels in the reported week. The data also showed gasoline inventories decreased 3.2 million barrels, exceeding analysts' expectations for a 567,000 barrel fall, whereas distillate stocks added 2.2 million barrels, compared to the 250,000 increase forecast. On Tuesday, the American Petroleum Institute reported a 7.5 million drop in US crude oil inventories for the same week, surpassing the 3.4 million barrel fall market forecast.
Upcoming fundamentals: US Flash Manufacturing PMI
There is only one data release occurring in the US during Friday's trading session, and it will be the US Flash Manufacturing PMI at 13:45 GMT. However, it is most unlikely that it will have a notable impact on the financial markets.
Gold remains near 1,335 on Friday
Daily chart: The yellow metal is in a similar position to yesterday, as the metal started Friday's trading session almost at the same level as at the beginning of Thursday's session. Previously, the commodity fluctuated between the resistance put up by the weekly R2 at 1,341.79 and a support level represented by the 55-day SMA at 1,333.03. As gold continued to retreat from the weekly resistance, and the simple moving average had moved lower on Friday morning, it is most likely that the yellow metal will end Friday's trading session with losses.Daily chart
Hourly chart: The hourly chart for gold reveals that the yellow metal touched and bounced off the weekly R2 around 16:00 GMT. Since then the commodity has been steadily falling, with only one exception. The 20-hour SMA managed to slightly slow down the fall in the evening.
Hourly chart
Traders still expect a surge
Meanwhile, OANDA Bank clients are largely bullish with respect to the bullion, meaning that 66.98% of positions are long. In the meantime, SAXO bank clients show a similar trend with 55.13% of all positions being held by bulls.