- SWFX traders remain bearish with 52% of open positions being short
- 58% of pending commands are to buy the bullion
- The metal's price opened the day's trading at 1,250.51
- Upcoming Events: US New Home Sales
After triggering bullish trader stop losses by suddenly falling below the 1,250 mark on Thursday, the yellow metal continued its surge on Friday morning. However, there are good news in regards to the unexpected dip of the metal. The decline revealed the location of a supporting short term trend line, which is a part of a short term ascending pattern.
The number of Americans filing for unemployment benefits rose slightly last week, official figures revealed on Thursday. The US Department of Labour reported that initial jobless claims rose to 241K in the week ended June 16, following the preceding week's upwardly revised 238K but meeting market analysts' expectations. Initial claims remained below the 300K level for the 120th week, the longest streak since 1973. The four-week moving average of initial jobless claims climbed 1.5K to 244,750 last week, the highest level since April.
US New Home Sales
In the second half of the day a data release in the US should be looked at. The US New Home Sales data will be released at 14:00 GMT. Although, this data set is highly unlikely to influence the financial markets through the US Dollar.
Gold trades near 1,250 level
The yellow metal has revealed a short term ascending channel pattern. The pattern could be drawn only after the fluctuations of Thursday's trading session showed, where the reference points of the pattern's trend lines are located at. However, during Friday's trading session the borders of the channel most likely will not play a significant role. The 200-hour SMA is set to be of more importance, as the pair had once more reached above the monthly PP at 1,253 while the mentioned SMA was preparing to provide resistance at 1,255.40. It is highly likely that the SMA will push the pair into a combined support of the monthly PP and the lower trend line of the short term junior pattern.
Hourly Chart
The daily chart shows that there are additional levels of significance to be taken into account, when watching the yellow metal. First of all the 55-day SMA is located at the 1,260 mark, and it is the next resistance, which the bullion is set to face. In addition, the 20-day SMA was located at the 1,265.50 mark on Friday morning. Meanwhile, the 100-day SMA was providing support at the 1,249.81 level.Daily Chart
SWFX traders contradict others
SWFX traders remain neutral bearish, as 52% of open positions are short on Friday. Meanwhile, 58% of trader set up orders are to buy the metal.
OANDA Gold traders have once more increased their bullish outlook, as open positions are 70.57% long on Friday, compared to 67.39% on Thursday. Meanwhile, traders of SAXO have stopped the buying of the metal, as 60.73% of open positions are long. Previously 60.13% of the bank's traders were long.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being above 1,300 in three months
Traders who were asked regarding their longer-term views on gold during the last month expect, on average, to see the metal around 1,300 in the second half of September. Generally, 37% (-1%) of participants believe the price will be above 1,350 in ninety days. Meanwhile, an astonishing 23% are voting for tight range between the 1,300 and 1,350 levels and the range of 1,350-1,400.