- SWFX traders are 54% bullish
- 57% of pending commands are to buy the metal
- The bullion opened at 1,232.90
- Upcoming Events: FOMC Member's Evans Speech; FOMC Member's Powell's Speech; Fed Chair Yellen's Speech; FOMC Member's Fischer's Speech
The number of Americans filing for unemployment benefits fell markedly last week, official figures revealed on Thursday. The US Department of Labor reported initial jobless claims dropped to 223,000 during the week ended February 24, the lowest level since March 1973, following the preceding week's downwardly revised 242,000 filings. Meanwhile, market analysts anticipated a slight increase to 243,000 in the reported week. That marked the 104th week of claims below the 300,000 level, the longest streak since 1973. Analysts suggest that the US labour markets are at or close to full employment. The four-week moving average of claims, which is considered a better measure of labour market trends, declined 6,250 to 234,250 last week, the lowest since April 1973.
Data also showed the number of continuing jobless claims rose 3,000 to 3.07 million in the week ending February 18, while their four-week moving average climbed 750 to 2.07 million. The strong labour market performance combined with solid inflation growth are expected to give the Federal Reserve more evidence to support a rate hike at its next policy meeting. Back in the Q4, the US economy expanded at a 1.9% annualized pace and is expected to grow 1.8% in the first quarter of 2017. After the release, the US Dollar Index hit its seven-week high.
Upcoming events: FOMC
On Friday the members of the Federal Reserve will speak out and explain their view on monetary policy. First, at 15:15 GMT FOMC member from Chicago Fed, Evans, will speak. Afterwards, at 17:15 GMT FOMC Member and a Governor of the Federal Reserve Jerome Powell will give a speech. Most important will be the speech given by Janet Yellen at 18:00 GMT at the Executives Club of Chicago. At the same time FOMC member Stanley Fischer will speak at the US Monetary Policy Forum in New York.
Gold passes long term support
Daily chart: The yellow metal has suffered major losses and is still positioned to fall even further, as by the end of Thursday's trading session a massive and strong support cluster was passed. During the early hours of Friday's trading session the bullion attempted to break above the cluster near the 1,235 level, but it failed and began to decline. Due to that reason it can be assumed that the Bullion will continue lower, as the range down to the 1,219.20 level, where the 38.20% Fibonacci retracement level is located at, is free from any other support levels.Daily chart
Hourly chart: By examining the hourly chart for gold it can be observed that there is a descending channel pattern, which has begun its work on February 27. In accordance with the pattern the commodity price is set to fall to the 1,220 level at the earliest on Monday morning. On the other hand there are no hourly support levels, which could hinder the fall.
Hourly chart
Traders still bullish on bullion
OANDA Gold traders have increased their bullish outlook, as open positions are 64.25% long on Friday, compared to 57.78% previously. Meanwhile, traders of SAXO bank also remain with a bullish view on the metal, as 63.48% of open positions are long.