- SWFX traders are 52% bearish
- 67% of pending commands are to buy the metal
- The bullion opened at 1,257.03
-
Upcoming Events: Federal Funds Rate
The bullion continues on its path lower in the strong and many times confirmed descending channel pattern. Due to the fact that until tomorrow there are no notable fundamental events set to occur, it is most likely set to continue on its path lower.
The Purchasing Managers' Index for the US manufacturing sector grew less than analysts estimated. According to the Institute for Supply Management, the PMI lost 2.4% compared to the previous month and tumbled to 54.8%, while experts anticipated only a slight decrease of 0.6%. Although in April the PMI rose at the slowest pace this year so far, it still remained above the 12-month average of 53.6%. The ISM report showed that the New Orders, Employment and Supplier Deliveries Indices dropped 7.0%, 6.9% and 0.8%, accordingly. Meanwhile, both Inventories and Prices Indices posted a 2% advance, which indicated that manufacturing companies stockpiled more raw materials than in the previous month and their costs increased.
Watch More: Dukascopy TV
Upcoming events: FOMC
No notable events are scheduled to occur on Tuesday. However, tomorrow the US will put out loads of data, starting in the second half of the day. Moreover, at 18:00 GMT the FOMC Statement and the Federal Funds Rate will be published.
Read More: Fundamental Analysis
Gold approaches 1,250 mark
The yellow metal continued on its path lower on Tuesday morning, as the metal's price was about to reach a strong support cluster near the 1,250 mark. The support cluster is most likely going to pause the decline of the bullion's price. The cluster is made up of the 55 and 200-day SMAs together with the weekly S2 and the 50.00% Fibonacci retracement level. If the metal rebounds it would most likely surge up to the weekly S1, which is located at the 1,260.48 level. On the other hand the upcoming last round of French election can still cause fundamental shifts.
Daily chart
The metal remains in the descending channel, as it continues on its path lower. Most clues on the hourly chart show that the metal is set to fall. The SMAs are pushing it lower, there is enough room for another decline, and the weekly S2 is above the lower trend line of the descending channel. However, a short term rebound should occur before the medium term pattern reaches the support of a long termHourly chart
Read More: Technical Analysis
Bulls show dominance
Traders remain bearish on the metal, as 52% of open positions are short on Tuesday. However, 67% of set up orders are to buy.
OANDA Gold traders are bullish regarding the metal, as open positions are 61.08% long on Tuesday, compared to 61.59% previously. Meanwhile, traders of SAXO bank are also bullish, as 64.93% of open positions are long, compared to 64.00% positions on Monday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being above 1,315 in early August
© Dukascopy Bank SATraders who were asked regarding their longer-term views on gold between April 2 and May 2 expect, on average, to see the metal near 1,315 in early August. Generally, 63% (+1%) of participants believe the price will be above 1,300 in ninety days. Alongside, 32% (-1%) of those surveyed reckon the metal will trade in the range between 1,100 and 1,300 over the next three months.