- 52% of all SWFX open positions are long
- 58% of pending commands are to buy the metal
- The bullion opened at 1,217.97
- Upcoming Events: US Existing Home Sales
US homebuilding activity advanced more than expected in the last month of 2016, official figures revealed on Thursday. The Commerce Department reported housing starts rose 11.3% to a seasonally adjusted annual pace of 1.23 million in December, following the previous month's upwardly revised 1.10 million units and surpassing analysts' expectations for a 1.19 million-unit rate. The December increase suggested the housing market boosted economic growth in the Q4. Meanwhile, building permits came in at a seasonally adjusted annual pace of 1.21 million units in the same month, unchanged from November's upwardly revised reading, slightly missing economists' projections of a 1.22 million-unit rate.
Separately, the Philadelphia Federal Reserve said its Manufacturing Index jumped to 23.6 points in January, the highest level in more than two years, driven by a rise in new orders, which climbed to 26.0 from 14.90. Analysts anticipated a sharp fall to 16.2 points in January from the prior month's 21.5. Data also showed the Employment Index surged to 12.8 from 3.6, while the Business Outlook Index for the next six months hit its highest level since August 2014 of 56.6 points. Other data released on Thursday showed initial jobless claims fell 15,000 to 234,000 last week, the lowest level in more than 43 years.
Upcoming fundamental events: US Existing Home Sales
There is one minor fundamental data release scheduled for Tuesday, as US Existing Home Sales data will be published at 15:00 GMT. However, for the data to cause short term volatility the difference from the aggregate market forecast should be drastic and fully unexpected.
Gold bounces off 1,220 mark
Daily chart: As forecasted before, the yellow metal surged back up to the resistance cluster, which surrounds the 1,220 mark, and bounced off it. The recent movements have forced analysts to adjust the medium term forecasts, as the latest sessions have revealed the true location of the lower trend line of the medium term ascending channel pattern. In accordance with the pattern the bullion is set to remain below the 1,220 level until January 26, when the lower trend line of the pattern is set to force the commodity price higher.Daily chart
Hourly chart: The hourly chart reveals additional and interesting information. The metal actually touched the resistance cluster just below the 1,220 mark three times this week. The bullion is constantly being pushed higher by the 20-hour SMA, which seems to have enough support to push the commodity price higher. However, it recently was passed, but the 55-hour SMA is moving higher and set to attempt to push the metal through the resistance.
Hourly chart
Trader opinion unchanged
OANDA Gold traders have consistently continued to decrease their bullish outlook on the yellow metal, as open positions were already 69% bullish on Tuesday, compared to 80% a few weeks ago. Meanwhile, traders of SAXO bank also remain long, regarding the yellow metal, as 63.35% of open positions are bullish.