Gold continues higher

Source: Dukascopy Bank SA
  • SWFX traders are 54% bullish
  • 56% of pending commands are to buy the metal
  • The bullion opened at 1,240.12
  • Upcoming Events: US Unemployment Claims
The surge of the yellow metal continues, as the bullion manages to trade above the 1,240 mark. However, the bullions surge is being directed by the uptrend line, which once more slowed down the commodity price's jump on Wednesday. In addition, the upper Bollinger is attempting to slow down the surge. Although it has been failing for the past three consecutive trading sessions, as the metal continues higher and will until the 1,248 level, where the next notable resistance cluster begins.

US crude oil inventories jumped more than markets anticipated amid a sharp increase in imports and rise in Cushing crude inventories, official figures showed on Wednesday. According to the Energy Information Administration, US crude stockpiles climbed 13.8 million barrels during the week ended February 3, following the preceding week's gain of 6.5 million barrels and surpassing analysts' expectations for a rise of 2.7 million barrels. The EIA reported US crude oil imports averaged 1.1 million barrels per day last week, rising the most at the Gulf Coast, where inventories surged 10.9 million, the record weekly increase, to 267.6 million barrels. Crude stockpiles at Cushing, Oklahoma, jumped 1.1 million barrels.

Meanwhile, gasoline stocks dropped 869,000 barrels in the same week, topping forecasts for a 1.1 million-barrel rise. Distillate stocks advanced 29,0000 barrels, whereas analysts anticipated a 300,000 barrel-increase. The EIA also said that refinery utilization rates fell 0.5% to 87.7%, while demand for refinery feedstocks declined 54,000 barrels per day. As a result, the price of West Texas Intermediate futures climbed 0.5% to $52.47 per barrel, up from $51.22 ahead of the release, while Brent futures advanced 0.8% to $55.48 per barrel. Earlier this week, the American Petroleum Institute reported US crude stocks climbed 14.3 million barrels.

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Upcoming events: US Unemployment Claims

The markets in general will be moved by the US Unemployment Claims at 13:30 GMT. That data release will be covered by the Dukascopy Research team live on the webinar, which will available for access by clicking on the notification on the trading platform.



Gold trades near 1,240 mark

Daily chart: The yellow metal traded rather flat during the early hours of Thursday's trading session. However, it is still set to gain, as the bullion was only searching for a support level which could continue to propel it higher. Moreover, the retreat only began due to the commodity price encountering the uptrend line, which has kept the surge steady for the past weeks. It is most likely that the support will be found in the monthly R1, which is located at 1,237.68. In addition, from a fundamental perspective the bullion is also set to surge.
Daily chart
© Dukascopy Bank SA

Hourly chart: The hourly chart shows that the bullion did not only surged to the uptrend line, but also moved out of the boundaries of the Bollinger bands. Due to that there was a short period of consolidation. However, most recently the commodity price is once more surging, as the combined support of the monthly R1 and the 20-hour SMA reversed the trend, and the SMA guides the metal's price higher.

Hourly chart
© Dukascopy Bank SA


SWFX traders become bullish

Traders have become bullish, as 54% of SWFX trader open positions are long. In the meantime, 56% of trader set up orders are to buy the bullion.

OANDA Gold traders have a bullish outlook on the yellow metal, as open positions were 64% bullish on Thursday. Meanwhile, traders of SAXO bank also remain long, regarding the yellow metal, as 57.84% of open positions are bullish.

Spreads (avg,pip) / Trading volume / Volatility


Market participants foresee the price of Gold being around 1,250 in May

Traders who were asked regarding their longer-term views on gold between January 9 and February 9 expect, on average, to see the metal near 1,250 in early April. Generally, 50% (+2%) of participants believe the price will be above 1,250 in ninety days. Alongside, 34% (-1%) of those surveyed reckon the currencies will trade in the range between 1,000 and 1,200 over the next three months.

© Dukascopy Bank SA

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