- SWFX traders remain bearish with 53% of open positions being short
- 64% of pending commands are to buy the bullion
- The metal's price opened the day's trading at 1,244.85
- Upcoming Events: US CB Consumer Confidence; Chairwoman of the Federal Reserve Janet Yellen's Speech
The bullion's price was recovering on Tuesday. However, the metal hit a strong resistance cluster during the morning hours. It still has to be seen, whether a long term decline begins or the metal once more surges to the upper trend line of the massive descending pattern.
Orders for US-made durable goods dropped more than expected last month, pointing to a slowdown in the manufacturing sector. The Commerce Department reported on Monday that durable goods orders fell 1.1% in May, following the preceding month's downwardly revised drop of 0.8% and falling behind expectations for a 0.5% decline. In the meantime, core durable goods orders rose just 0.1% last month after dropping 0.5% in April, whereas analysts anticipated an increase of 0.4% during the reported month.
Janet Yellen' speech in focus
During the day the markets will see one data release, which might affect the strength of the US Dollar. It will be the release of the CB Consumer Confidence at 14:00 GMT. However, it will make no difference, as Janet Yellen is set to give a speech at 17:00 GMT. That is the most important event of the day.
Gold recovers after crashing
After the sudden crash of the yellow metal, which occurred on Monday, the bullions price was recovering on Tuesday. The yellow metal traded rather flat, as it faced the resistance of the first weekly support level at the 1,246 mark. However, that resistance was broken and the bullion jumped to trade above the 1,250 mark. By looking at the technical aspects of the commodity price on the hourly chart, a prolonged recovery of the metal now seems unlikely. Every ascending chart of the bullion has been broken. Moreover, the metal faces the resistance of the various simple moving averages, the monthly pivot point at 1,253 and the weekly pivot point at 1,252.57. However, if these levels of resistance are broken, the pair might resume the surge.
Hourly Chart
In regards to the daily chart it has to be noted that there are SMAs located close by to the bullion's price. First of all the 100-day SMA is located at the 1,250.23 level. Secondly, the 55-day SMA is at the 1,260.20 mark. The 20-day SMA is enforcing the weekly R1 at the 1,264 level. In regard to the support provided by daily levels of significance, the 200-day SMA and the lower Bollinger band are located, respectively, at 1,237.84 and 1,234.57 levels.Daily Chart
SWFX traders contradict others
SWFX traders remain neutral bearish, as 52% of open positions are short on Tuesday Meanwhile, 62% of trader set up orders are to buy the metal.
OANDA Gold traders have decreased their bullish outlook, as open positions are 67.94% long on Tuesday, compared to 68.37% on Monday. Meanwhile, traders of SAXO have decreased their long position amount, as 56.03% of open positions are long. Previously 57.49% 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, 36% (-3%) of participants believe the price will be above 1,350 in ninety days. Meanwhile, most people see the bullion in the 1,300-1400 range, as 46% see the metal in that range.