- SWFX traders are neutral
- 65% of pending commands are to buy the metal
- The bullion opened at 1,222.64
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Upcoming Events: ECB President Draghi's Speech; US Import Prices
The bullion gained strength in the aftermath of events in the US. However, the path downwards seems to be about to be resumed. As the FBI Director Jame Comey got fired, the US Dollar declined, which propelled the yellow metal's price higher. However, as the bullion hit the upper trend line of a descending channel pattern, it began a decline.
The number of job openings in the US rose in March, according to the JOLTS monthly report. Data from the US Bureau of Labour Statistics released on Tuesday showed that the US job openings increased to 5.74M over the course of March, following the previous month's downwardly revised figure of 5.68M. Meanwhile, analysts anticipated a slight decrease to 5.67M. Job openings grew across business and professional services as well as in local and state government education, while they declined in education services.
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Upcoming events: Draghi and US Imports
The main event of the day will be the speech given by ECB President Mario Draghi, which will occur at exactly 12:00 GMT. Draghi is expected to give clues regarding the future monetary policy of the EU. Later in the day there will be another event occurring, as at 12:30 GMT the US Import Prices data will be published. However, this data release is highly unlikely to cause a notable effect.
Read More: Fundamental Analysis
Gold bounces higher on fundamentals
Although the yellow metal had passed the support cluster near the 1,220 mark on Tuesday, it traded back above it on Wednesday morning. The reason for the sudden rebound, which occurred late in the Tuesday's session, was the slight decline of the US Dollar caused by US President Donald Trump firing the Director of FBI. However, the yellow metal is still set to decline, and yesterday's move showed that the support cluster can be passed. Due to that it is assumed that the cluster at 1,220 will be passed and the bullion will decline down to the weekly S1, which is located at the 1,212.68 mark.
Daily chart
The recent fall of the US Dollar and the subsequent rise of the yellow metal's price was consistent with the descending channel pattern. The commodity price was already bending the lower Bollinger band, as it moved lower. That was a sign of an upcoming jump higher, which occurred. The rise of the bullion was conveniently stopped by the upper trend line of the channel down pattern, and the metal's price is set to decline in the near future.Hourly chart
Read More: Technical Analysis
Bulls show dominance
Traders remain neutral on the metal. However, 65% of SWFX trader set up orders are to buy the metal.
OANDA Gold traders remain bullish, as open positions are 70.77% long on Wednesday, compared to 70.15% previously. Meanwhile, traders of SAXO bank remain firm, as 68.78% of open positions are long, compared to 69.21% positions on Tuesday.
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 10 and May 10 expect, on average, to see the metal near 1,350 in early August. Generally, 45% (-2%) of participants believe the price will be above 1,350 in ninety days. Alongside, 37% (+2%) of those surveyed reckon the metal will trade in the range between 1,200 and 1,350 over the next three months.