- SWFX traders are 51% bullish
- 59% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,215.71
- Upcoming Events: US JOLTS Job Openings
As it was expected, the metal's price has rebounded against the lower trend line of the descending channel pattern. Due to that reason a short term surge might be expected. However, the commodity price faces various resistance levels, which might delay the fulfilment of the forecast.
Euro zone Sentix economic sentiment remained close to the ten-year high, a private survey showed on Monday. The Sentix Investor Confidence Index dropped 0.1 point to 28.3 in June, following a reading of 28.4 in the preceding month and beating forecasts for a decline to 28.1. In the last few days, market activity was determined by investors' fears over interest rate policy changes in the EU. With a strongly improved economic momentum in the Euro zone, investors' assessment of the current situation increased for the seventh consecutive time, reaching 37.3 points, the highest level in nearly 10 years.
JOLTS Job Openings in focus
After a fully empty Monday one data release is worth mentioning on Tuesday. It will be the JOLTS Job Openings data at 14:00 GMT. However, a notable impact on the financial markets is most unlikely. Moreover, the data set is going to be ignored due to another reason. On Wednesday Janet Yellen is set to testify, which means that the markets will go quiet until then.
XAU/USD meets resistance
The yellow metal continues to trade in accordance with the descending channel pattern, as the commodity price bounced off the support of the channel on Monday. That means that a short term ascending pattern is highly set to reveal itself. The reason or that is the fact that in accordance with the theory the bullion's price should surge up to the resistance of the channel down. However, the surge has already been hindered by the 55-hour SMA, which on Tuesday morning was located just below the 1,215 mark. Although, it could be observed already during the early hours of the trading session that the metal will make another attempt at breaking through the SMA. If the metal succeeds at that, it will face additional resistance from the 100-hour SMA, which was fluctuating below 1,220 level.
Hourly Chart
The daily chart reveals one minor additional piece of information. The lower Bollinger band is once more located below the commodity price, as on Tuesday morning the band was providing support at the 1,207.95 level.Daily Chart
SWFX market is almost neutral
Traders of Dukascopy have not changed their open position proportions since Wednesday, as 51% of traders are bullish. However, trader set up buy order amount has fallen, as 59% of orders are to buy on Tuesday, compared to 65% on Monday.
OANDA Gold traders have decreased their bullish outlook, as open positions are 72.98% long on Tuesday, compared to 72.20% on Monday. In the meantime, SAXO bank sentiment is 68.54% bullish.
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 October. Generally, 63% (-2%) of participants believe the price will be above 1,300 in ninety days. Meanwhile, most people see the bullion in the 1,350-1400 range, as 30% (+1%) see the metal in that range.