- SWFX traders are 56% bullish
- 60% of pending commands are to buy the metal
- The bullion opened at 1,248.59 on Friday
- Upcoming Events: US New Home Sales, Revised UoM Consumer Sentiment
The number of Americans filing for unemployment benefits increased slightly more than expected last week, though the four week average dropped 4,000 to 241,000, weakest level since 1973, official figures revealed on Thursday. Last week's results were driven by growing economy and tight labor market, which is likely to prompt companies to retain experienced workers, supporting wage growth. According to the US Department of Labor, national jobless claims rose 6,000 to 244,000 during the week ended February 17 from the preceding week's upwardly revised 238,000. Meanwhile, economists anticipated an acceleration to 242,000 during the reported period. Filings have been holding below 300,000 for 103 straight weeks, showing healthy signs of the US job market.
In the meantime, continuing claims fell 17,000 to 2.06 million during the week ended February 11, while their four-week moving average dropped 10,750. Overall, the Federal Reserve is widely expected to increase interest rates fairly soon, with labor market and inflation data set to reveal better performance. The last time the Fed raised its benchmark overnight rate was in December last year, when the rate was increased from 0.5% to 0.75%.
Upcoming events: Two minor data releases in US
The fundamental events in the US today will be, for the most part, not very significant and are not likely to affect the price of the yellow metall. The two data releases that are planned for today are US New Home Sales and Revised UoM Consumer Sentiment scheduled for 15:00 GMT.
Gold breaks out of triangle
Daily chart: As forecasted and mentioned for the past week by the Dukascopy research team, the yellow metal has broken out of a triangle pattern and surged. The bullion has reached and even surpassed the 1,250 mark, about which speculations have been roaming around the markets for the past few months. On Friday the metal was not done with its move higher, as the 50.00% Fibonacci retracement level at 1,248.96 was broken, and with that the bullion set its path to the 1,258.50 mark, where the weekly R2 is located at.Daily chart
Hourly chart: The hourly chart reveals that during the last 24 hours the price of the yellow metal was held in place at 1,248.96 by the 50% Fibonacci retracement for 16 hours straight. However, during the last couple of hours the price of the commodity was able to break free from the influence of the aforementioned Fibo, and it currently continues to grow. It is possible that it will continue to grow until it reaches the closest resistance level at 1,258.51, which is represented by the weekly R2.
Hourly chart
Traders remain bullish
OANDA Gold traders have decreased their bullish outlook on the yellow metal, as open positions have fallen to 59.74%, compared to 63.48% on Wednesday. In the meantime, traders of SAXO bank have steeply diminished their bullish outlook, regarding the yellow metal, as only 50.23% of open positions are bullish, compared to 61.00% yesterday.