- 59% of all SWFX open positions are long
- 62% of pending commands were to buy the metal
- Gold was not traded on Monday
- Upcoming Events: US Pending Home Sales
Americans became more optimistic about the economy in December since the postelection bump in confidence continues. As data suggest the US consumer confidence reached its highest in more than 15 years during the previous week as Americans expect more strength ahead in business conditions, stock prices and the job market following the election of Donald Trump as president in November. According to the Conference Board the Consumer Confidence Index advanced to 113.7 in December from an upwardly revised 109.4 in November. Meanwhile, the data topped estimates in a Reuters poll for a reading of 109.0. Another reason for the gain in confidence is surging optimism among older Americans. Economists follow confidence indicators because upbeat consumers are more likely to increase personal spending, which makes up most of the US economy.
In the meantime, house prices continued their steady recovery in October, as another spike in borrowing costs after Donald Trump's victory.
US Pending Home Sales
The US Pending Home Sales are scheduled to be released at 15:00 GMT, and this is marked as a medium impact data release. However, the possibility of the data actually impacting the direction of the metal is highly unlikely as the data is minor, and it is a sure thing that in the event of a divergence from the forecasts it would only cause minor fluctuations. It is usual that after such fluctuations the rates return to the previous level in thirty minutes.
Gold trades above 1,140 mark
Daily chart: The yellow metal traded above the 1,140 mark on Wednesday morning. Previously, the commodity price jumped with high momentum and reached above the 1,150 mark during the early hours of Tuesday's trading session. However, it retreated after the surge until it found support in the 1,133.57 level, where the weekly PP is located at. Today's surge was just a continuation of the rebound. It is likely that the rise of the yellow metal will not extend further than the 1.150,18 mark where the weekly R2 is located at.Daily chart
Hourly chart: The hourly chart has regained relevant Bollinger bands, as more than 20 hours have passed since the flat candles of the Monday's trading session influenced the commodity price. In addition, as soon as that occurred, the upper Bollinger band went to work and provided resistance to the bullion by hindering its rebound from the 1,133.57 mark.
Hourly chart
SWFX sentiment remains bullish
OANDA Gold traders remain largely optimistic regarding the Bullion, as open positions were 79% long. Meanwhile, traders of SAXO bank increased their bullish stance, as Wednesday showed 67.40% of traders betting the metal will surge, compared to 63.35% during the previous session.