Gold trades above trend line on Thursday

Source: Dukascopy Bank SA
  • 50% of all SWFX open positions are long
  • Gold opened Thursday's session at 1320.85
  • Economic events to watch over the next 24 hours: US Final GDP; US Unemployment Claims; Janet Yellen's Speech
The yellow metal traded near the falling wedge pattern's lower trend line on Thursday morning, as the metal had been more volatile to the upside. During the first rebound from the trend line the bullion managed to surge to the resistance provided by the monthly pivot point at 1,326.43, which is supported by the 20-day SMA at 1,326.18. During the day it is most likely to become clear, whether the metal will continue to surge in accordance with the rising wedge pattern or a move lower will occur due to the triangle pattern.

New orders for US manufactured core durable goods dropped less than expected last month, official figures revealed on Wednesday. According to the US Department of Commerce, total new orders for durable goods were unchanged on a monthly basis in August, following the preceding month's downwardly revised gain of 3.6%, whereas market analysts expected new orders to drop 1.0% in the eight month of the year. August's flat reading was mainly driven by a 21.9% drop in demand for civilian aircraft. Excluding goods like motor vehicles and machinery, durable goods orders declined 0.4% in August, while economic desks penciled in a fall of 0.5%. The previous month's rise in core new orders was revised down to 1.3% from the originally reported 1.5%. Other data released by the Energy Information Administration on Wednesday showed crude oil inventories in the United States fell 1.9 million barrels in the week ended September 23, whereas analysts anticipated a rise of 2.4 million barrels after the preceding week's 6.2 million-barrel drop. After the release, WTI crude rose 1.1% to trade at $45.18 per barrel, whereas Brent crude advanced 1.5% to trade at $46.66 on the NYSE.

According to the Bureau of Statistics release, Australia's official unemployment rate has reached 5.6%, despite the forecasts of the 3,900 jobs loss last month. Australian employment, in turn, declined for the first time in seven months, although underlying that trend remains favorable as full-time jobs rebounded. The economy shed 3,900 jobs in August, compared with a revised gain of 25,300 in July. Also, the good news is that full-time employment added 11,500, while July's drop was revised to 43,400. Overall, Australia's labour market remains in decent health despite strong concerns about the economy's ability to hold a possible downturn following the end of the mining investment boom. Consistent jobs creation has painted a favorable picture of Australia's economy, which recently recorded its 21st consecutive quarter of economic expansion. Taking into account all the data as well as interest rates, employment should continue its gradual upward revision in the near future.

Watch More: Dukascopy TV


Upcoming fundamentals: Various types of US data

In the second part of the day data from the US will reveal how strong the Greenback is. First, at 12:30 GMT the US Final GDP for the last quarter will be out, and at the same time the US Unemployment Claims are also set to be released. Last but likely the most important will be the Fed Chairwoman's Janet Yellen's Speech at 20:00 GMT.



Gold rebounds against trend line

Daily chart: The bullion bounced off the rising wedge pattern's lower trend line and surged on Thursday morning. On early morning, the metal was about to face a resistance cluster from 1,326 to 1,331, which is comprised of both the weekly and monthly pivot points and the 20 and 55-day simple moving averages. Previously, it was possible that the yellow metal will break out from the rising wedge pattern due to the pressure provided by a triangle pattern, and the threat still remains, as the triangle remains active.

Daily chart
© Dukascopy Bank SA

Hourly chart: The hourly chart for gold shows that the yellow metal reached the monthly pivot point at 11:00 GMT, and the metal fell afterwards to reach the rising wedge pattern's lower trend line around the time from 14:00 GMT to 15:00 GMT. At the pattern's lower trend line the bullion changed its direction and surged. During the sub sequential surge the metal had been hindered by the 20-hour SMA.

Hourly chart
© Dukascopy Bank SA


Traders become neutral on the metal

Traders have become neutral on the yellow metal, as 50% of open positions were long on Thursday morning. In the meantime, pending commands were 68% to buy gold.

Meanwhile, OANDA Bank clients are majorly bullish with respect to the bullion, meaning that 68.62% of all positions are long. In the meantime, SAXO bank clients show a similar trend with 62.22% of all positions being held by bulls.

Spreads (avg,pip) / Trading volume / Volatility


Market participants foresee the price of gold around 1,350 by December

Traders who were asked regarding their longer-term views on gold between August 29 and September 29 expect, on average, to see the metal around 1,350 by the end of December. Generally, 57% of participants believe the price will be above 1,350 in ninety days. Alongside, 26% (-1%) of those surveyed reckon the price will trade in the range between 1,200 and 1,350 over the next three months

© Dukascopy Bank SA

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.