- SWFX traders are neutral
- 66% of pending commands are to buy the metal
- The bullion opened at 1,226.21
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Upcoming Events: US JOLTS Job Openings; FOMC Member Kaplan's Speech
The bullion is being prepped up by the 100-day SMA, which is holding its ground at 1,225.58. Although, the hypothesis of a continuation of the decline remains in force. The commodity price continues to trade in the descending channel pattern, which has guided it for a quite long period. It seems that the fall was too sharp, and the recent regaining of ground was just a short lived consolidation.
The US unemployment rate dropped unexpectedly last month, as companies created more jobs than expected. The Department of Labour reported that US firms added 211K jobs to the economy in April, following the preceding month's revised down increase of 79K jobs and surpassing analysts' expectations for a 194K gain. Data also showed that the unemployment rate fell to 4.4%, down from March's 4.5%, whereas markets anticipated an acceleration to 4.6%.
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Upcoming events: Minor US data
In the second part of the day some volatility might be induced in the financial markets by medium impact graded US events. At 14:00 GMT the JOLTS Job Openings data will be published. At 20:15 GMT FOMC Member Kaplan is set to give another speech.
Read More: Fundamental Analysis
Gold remains below 1,230 level
During the early hours of Tuesday's trading session the yellow metal's price remained above the 1,225 mark, as the bullion found support in the 100-day SMA. The simple moving average is located at the 1,225.59 level and provides significant support, as it has kept the metal's price from falling during this week. It is most likely that the commodity price will continue the decline, if the SMA is passed, as the lower Bollinger band has moved below the 100-day SMA. Due to that factor the next targeted support is the 38.20% Fibonacci retracement level, which is located at the 1,219.20 level.
Daily chart
The hourly chart remains unchanged, as the bullion continues to trade in the descending channel pattern. However, the lower Bollinger band of the hourly chart is providing enough slow down power for the bullion not to plummet down t the 38.20% Fibonacci retracement level.Hourly chart
Read More: Technical Analysis
Bulls show dominance
SWFX sentiment is neutral, regarding the metal. However, 66% of SWFX trader set up orders are to buy the bullion.
OANDA Gold traders have once more increased their bullish position amount, as open positions are 70.15% long on Tuesday, compared to 69.78% previously. Meanwhile, traders of SAXO bank remain firm, as 69.21% of open positions are long, compared to 69.31% positions on Monday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being below 1,350 in early August
© Dukascopy Bank SATraders who were asked regarding their longer-term views on gold between April 9 and May 9 expect, on average, to see the metal near 1,350 in early August. Generally, 47% (+2%) of participants believe the price will be above 1,350 in ninety days. Alongside, 35% (+2%) of those surveyed reckon the metal will trade in the range between 1,200 and 1,350 over the next three months.