- SWFX traders are 51% bearish
- 61% of pending commands are to buy the metal
- The bullion opened at 1,255.56
- Upcoming Events: US Unemployment Claims; ECB Monetary Policy Meeting Accounts
US private companies created more jobs than markets expected last month, suggesting further tightening of the labour market. According to the ADP National Employment Report released on Wednesday, the US private sector added 263,000 new jobs to the economy in March, following the preceding month's downwardly revised gain of 245,000 and surpassing analysts' expectations for an increase of 184,000. The ADP data come ahead of the US Department of Labour's more comprehensive report on non-farm employment due on Friday. Yesterday's better-than-expected figures ratchet up analysts' expectations for Friday's numbers, who initially expected the NFP report to show a gain of 174,000 jobs.
Other data released by the ISM on Wednesday revealed that US services activity slowed more than expected last month, with the ISM Non-Manufacturing PMI coming in at 55.2, down from the prior month's 57.6, while analysts anticipated a slight decrease to 57.0 points. In the meantime, the EIA reported US crude oil inventories climbed 1.6M barrels in the week ended March 31, missing expectations for a 0.1M barrel decrease, following the preceding week's gain of 0.9M barrels and raising concerns over the production cut agreement.
Upcoming events: Unemployment Claims
In regard to fundamental events in the US, as it is accustomed on a Thursday, the US Unemployment Claims will be published at 12:30 GMT. However, traders should also keep an eye out during the release of ECB Monetary Policy Meeting Accounts, as an unexpected surprise in them might create a run to the safety of the yellow metal.
Gold struggles above 1,250 mark
Daily chart: During the early hours of Thursday's trading session the yellow metal's price made another attempt to break higher. However, after a successful passing of the 200-day SMA the commodity price did not manage to reach the weekly R1, which is located at the 1,259.70 level. After the attempt the metal's price began a decline back below the mentioned levels of significance. It is likely that the bullion will retreat down to the support levels, which are located near the 1,250 mark. There it is most likely going to find support, as it did the same exact thing on Wednesday.Daily chart
Hourly chart: The hourly chart shows how the bullion's price had already slipped below the 1,250 mark during Wednesday's trading. However, the FOMC meeting minutes release weakened the US Dollar and propelled the price higher. Due to that it can be surely stated that the movements in the commodity price are caused by fluctuations in the US Dollar.
Hourly chart
Markets remain bullish
OANDA Gold traders have increased their bullish outlook, as open positions are 55.85% long on Thursday, compared to 52.97% previously. In addition, traders of SAXO bank have also increased the percentage of long positions, as 56.50% of open positions are long, compared to 51.74% on Wednesday.