- 53% of all SWFX open positions are long
- Gold opened Monday's session at 1318.47
- Economic events to watch over the next 24 hours: US Final Manufacturing PMI; US ISM Manufacturing PMI; US Construction Spending; ISM Manufacturing Prices
Consumer prices in the Euro zone increased last month, official data showed on Friday. According to Eurostat's preliminary reading, the annual Consumer Price Index in the region advanced 0.4% in September, following to the preceding month's 0.2% and meeting analysts' expectations. Meanwhile, the so-called core CPI, which excludes food, energy, alcohol and tobacco, rose 0.8% in the reported month, unchanged from the previous month's reading, whereas economic desks anticipated a slight acceleration to 0.9%. Prices of food, alcohol and tobacco jumped 0.7% in the ninth month of the year, following August's rise of 1.3%, while prices of services and 1.2%, slightly up from the previous month's 1.1%. Non-energy industrial goods prices accelerated 0.3%, unchanged from August, whereas the price of energy declined 3.0% in September, following the prior month's 5.6% fall. The Euro zone seasonally adjusted unemployment rate was 10.1% in August, in line with July's reading but down from 10.7% seen in the same month year ago. Other data released by Federal Statistics Office showed that Germany's retail sales increased 3.7% on an annual basis and dropped 0.4% in August. The July figure was revised down to a gain of 0.5% from the originally reported rise of 1.7%.
The number of Americans filing for unemployment benefits rose less than expected, official figures revealed on Thursday. According to the US Department of Labor, the number of claimants jumped 3,000 to a seasonally adjusted rate of 254,000 in the week ended September 24 after touching the lowest level since mid-July in the previous seven days. Meanwhile, market analysts anticipated an increase to 260,000 claims in the week ending September 24, following the preceding week's 251,000. Filings for US unemployment benefits remained below the 300,000 level for the 82nd 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 256,000 last week. Furthermore, so-called continuing claims dropped 46,000 to 2.062 million in the week ended September 17. According to the final Q2 GDP print released by the Department of Commerce the US economy expanded at an inflation-adjusted 1.4% seasonally adjusted annual rate in the Q2 after growing 0.8% in the Q1. Economists expected the Q2 GDP to increase 1.3%. The US Dollar Index advanced to 95.49 from 95.42 ahead of the release.
Upcoming fundamentals: US manufacturing data
The strength of the US Dollar will be directed by manufacturing data releases later in the day, as the Final Manufacturing PMI will be out at 13:45 GMT. However, there will be additional data regarding the US, as ISM Manufacturing PMI, Construction Spending and ISM Manufacturing Prices will be released at 14:00 GMT.
Gold continues the fall on Monday
Daily chart: The yellow metal marked a consecutive week of losses, as the bullion fell below the 1,315 level on Monday morning. Previously, a surge was occurring, as the metal had found support. However, the surge was not sustained, and gold managed to only touch the 1,327.90 level. Daily aggregate technical indicators forecast, that the metal will remain unchanged during today's trading session. Such kind of scenario could unfold, if the bullion finds support in the 100-day SMA at 1,310.03 and rebounds back to the 1,318.33 level.Daily chart
Hourly chart: The hourly chart for gold shows that the yellow metal's Friday morning surge was stopped by a combined resistance of the upper Bollinger band and 100 and 200-hour SMAs around the level of 1,328. Afterwards, the bullion fell until it suddenly stopped the fall around 1,315. Since then, the metal has remained near that level, as it tried to surge and was stopped by the 20-hour SMA at 1,319.17.
Hourly chart
Traders shift to bullishness
Meanwhile, OANDA Bank clients are majorly bullish with respect to the bullion, meaning that 78.99% of all positions are long. In the meantime, SAXO bank clients show a similar trend with 68.95% of all positions being held by bulls.