- SWFX traders are neutral in regard to the metal
- 61% of pending commands are to buy the bullion
- The metal's price opened the day's trading at 1,251.38
- Upcoming Events: US Final GDP; US Unemployment Claims
The yellow metal remains in the previous range below the 1,250 mark. However, various clues have revealed the future direction of the bullion. All in all, a surge is to be expected from the metal on the short term charts. Although, the long term situation still looks gloomy for gold.
Pending home sales in the United States dropped for the third consecutive month in May, official figures revealed on Wednesday. The National Association of Realtors reported that pending home sales fell 0.8% last month, following April's downwardly revised drop of 1.7% and falling behind market analysts' expectations for an increase of 0.9%. According to Wednesday's data, supply shortages mainly drove the fall. The supply of homes available for sale dropped more than 8% year-over-year in May.
US Final GDP
As the speeches have shook the markets on Wednesday, more or less a calmer situation is to be expected on Thursday. The US Final GDP and the US Unemployment Claims will be published at 12:30 GMT. The data release will be covered by the Dukascopy research team in real time on the bank's webinar platform.
XAU/USD reveals its pattern
A third attempt of the yellow metal to break through the resistance levels, which are located just above the 1,250 mark. However, the metal's price is also not retreating, as the combined support of the various simple moving averages is providing the needed strength for the metal. Meanwhile, while looking back at the few previous trading sessions, one can notice that in the recent days the commodity price has formed an ascending triangle pattern. In accordance with the pattern the bullion's price is setting itself up for a breakout to the upside, as pressure has been building up against the resistance of the 1,250 mark while the metal has gradually shown higher bounce off low levels.
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 1,250.39 level. Secondly, the 55-day SMA is at the 1,258.94 mark. The 20-day SMA is just below the weekly R1 near the 1,262 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 1,237.19 and 1,231.11 levels.Daily Chart
SWFX market is neutral
Traders of Dukascopy have become neutral in regard to the yellow metal, as long and short open positions proportion is equal. However, 61% of trader set up orders are to buy the metal.
OANDA Gold traders have decreased their bullish outlook, as open positions are 66.79% long on Thursday, compared to 69.58% on Wednesday. Meanwhile, traders of SAXO have done the opposite, as 62.23% of open positions are long. Previously 58.88% 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 by the end of September. Generally, 39% of participants believe the price will be above 1,350 in ninety days. Meanwhile, most people see the bullion in the 1,350-1400 range, as 23% (-3%) see the metal in that range.