- 54% of all SWFX open positions are long
- 62% of pending commands were to buy the metal
- The bullion opened at 1,200.04
- Upcoming Events: US Bank Holiday
US retail sales rose more than expected last month amid higher demand for furniture and automobiles, figures showed on Friday. According to the Department of Commerce, retail sales advanced 0.6% in December, following the preceding month's upwardly revised 0.2% gain and surpassing analysts expectations for an increase of 0.5%. The following increase provided further evidence that the US economy gained momentum in the last three months of 2016. In addition, retail sales grew 4.1% on annual basis and 3.3% over the past year. Sales of automobiles contributed most to this increase, jumping 2.4%.Excluding volatile items, sales climbed 0.2% last month, compared to November's upwardly revised rise of 0.3%, while analysts anticipated an increase of 0.5% during the reported period.
Separately, the Department of Labor reported its Producer Price Index surged 0.3% in December, after rising 0.4% in the prior month. However, the reading topped economists' forecasts for a 1.1% increase. The PPI grew 1.3% compared to the same period one year ago and 1.6% for all of 2016. The rise was mainly driven by stronger oil prices that rose above $50 per barrel over the past months. In the meantime, the University of Michigan said its flash Consumer Confidence Index fell to 98.1 in January, following December's final reading of 98.2 and missing expectations for 98.6.
Upcoming fundamental releases: A holiday
There are no scheduled data releases in Europe that could affect the financial markets. In the meantime, on the other side of the Atlantic there is a Bank Holiday. However, traders should not relax too much, as tomorrow begins the World Economic Forum.
Gold continues to surge
Daily chart: On Monday morning the yellow metal was in its sixth consecutive trading session of gains, as the metal traded near the 1,205 mark and was set to score even more gains. The bullion faced no resistance up to the level of 1,211.87, where the first weekly resistance level was located. The commodity price did not simply just jump to this level due to the resistance provided by minor levels of significance, which create the slowed down movement of a financial instruments price.Daily chart
Hourly chart: The hourly chart reveals that in the aftermath of hitting a support cluster during the middle of Friday's trading session the metal has begun a surge. The only thing, which hinders the surge of the bullion is the upper Bollinger band of the hourly chart. However, each time the rate bounces off of it, it finds support in the 20 and 55-hour SMAs just below it.
Hourly chart
Trader bullish sentiment
OANDA Gold traders have decreased their largely optimistic outlook on the yellow metal, as open positions were 74% bullish on Monday, compared to 76% previously. Meanwhile, traders of SAXO bank also remain long, regarding the yellow metal, as 63.46% of open positions are bullish.