- SWFX traders are 57% bearish
- 64% of pending commands are to buy the metal
- The bullion opened at 1,282.88
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Upcoming Events: FOMC Member Kashkari's Speech; US Treasury Secretary Mnuchin's Speech; French Presidential Election
The yellow metal's price seems to have started a period of hibernation before the French presidential election. Not only the commodity price has decreased volatility, compared to the start of the week, but also from a technical perspective the metal's price is being squeezed in by various levels of significance on the smaller timeframe charts.
US manufacturing activity in the Mid-Atlantic region slowed markedly in April, official figures revealed on Thursday. The Philadelphia Federal Reserve reported its Manufacturing Index dropped to 22.0 in the reported month, following March's reading of 32.8 and falling behind analysts' expectations for a decrease to 25.6 points. Analysts stated that business optimism prompted by Donald Trump's win in the presidential election started to fade, putting downward pressure on business activity.
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Upcoming events: Markets concentrate on French Election
Most market participants are expecting the French election, which is going to happen on April 23. Due to that reason other events have become more or less insignificant. However, there are two speeches, which might be worth listening to. On Friday, at 13:30 GMT, FOMC Member Kashkari will give a public speech. In addition, on early Saturday morning, at 8:15 GMT, the Treasury Secretary of the United States Mnuchin will give a speech.
Read More: Fundamental Analysis
Gold remains above retracement level
During the early hours of Friday's trading session the yellow metal continued trading above the 61.80% Fibonacci retracement level, which is located at the 1,278.73 level. The bullion has lost its momentum due to the fact that the markets are expecting the results of the French presidential election on Sunday. Meanwhile, from a technical perspective, a medium term ascending channel's lower trend line had closed in on the commodity price from the downside. The trend line was located at the 1,276.95 level on Friday.
Daily chart
The stalemate of the bullion can be also observed from a technical perspective on the hourly chart. From the upside the metal's price is being forced lower by the 20, 55, 100 and 200-hour SMAs together with the upper hourly Bollinger band. It seems that the 55-hour SMA is the one who hold the most strength. Meanwhile, from the downside the 61.80% Fibonacci retracement level and the medium term ascending channel pattern's lower trend line with the lower Bollinger band are providing support. However, the support is not being tested at all, as the metal's price makes attempt after attempt to surge.Hourly chart
Read More: Technical Analysis
Markets remain neutral
Traders are shorting the metal, as 57% of open positions are short. However, 64% of trader set up orders are to buy the metal.
OANDA Gold traders are neutral regarding the metal, as open positions are 51.30% long on Friday, compared to 51.69% previously. Meanwhile, traders of SAXO bank remain neutral, as 50.61% of open positions are long, compared to 51.29% short positions on Thursday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of Gold being above 1,300 in July
© Dukascopy Bank SATraders who were asked regarding their longer-term views on gold between March 21 and April 21 expect, on average, to see the metal near 1,300 in July. Generally, 54% (+1%) of participants believe the price will be above 1,300 in ninety days. Alongside, 33% (-2%) of those surveyed reckon the currencies will trade in the range between 1,100 and 1,300 over the next three months.