- SWFX traders are 52.50% bearish
- 47% of pending commands are to buy the bullion
- The metal's price started the Monday's trading at 1,256.42
- Upcoming Events: US Existing Home Sales
In line with expectations, the new trading week the yellow metal started above the 1,250 mark. In the early Monday's morning the yellow metal has approached a combined resistance level set up by the channel's upper trend-line and the monthly PP at 1,258.37.
Monthly data on the US Building Permits contributed to the second straight day of gains in the USD/JPY currency pair. Experts anticipated the number of building approvals to rebound to 1.20M in June, expecting an increase in future construction despite higher costs for materials. The report showed that housing sector strengthened as building permits and housing starts advanced more than expected to 1.25M and 1.22M, respectively.
No significant data today
In first day of the week an economic calendar does not contain any data release that might substantially affect the price of gold. The only macroeconomic indicator, to which traders can pay attention, is the US Existing Home Sales that will be announced at 14:00 GMT.
XAU/USD approaches monthly PP
In line with expectations, Friday's trading session the yellow metal closed above the 1,250 level, as it faced no sizable resistance barriers on its way. For the same reason, in the Monday's morning it continued the surge, although at a slower pace. In case the pair will retreat from the monthly PP at 1,258.37, the subsequent fall should be stopped by a combination of the 50% Fibonacci retracement level at 1,249.16 and the 55-hour SMA or the weekly PP at 1,246.65 and the 100-hour SMA. However, given that the pair is moving in a one month long ascending channel, it is unlikely that a sharp drop will follow. In contrast, the rate, most probably, is going to try to reach the pattern's upper trend-line and only afterwards make a fully-fledged rebound.
Hourly Chart
On the daily timeframe it can be observed that the pair has successfully broke though the combined resistance level set up by the 55- and 100-day SMAs as well as the 50% Fibonacci retracement level and is now approaching the monthly PP at 1,258.36. Given the general uptrend, it is possible that the bullion will manage to bypass this barrier as well.Daily Chart
SWFX traders remain almost neutral
Traders of Dukascopy are neutrally bearish, as 52% of open positions are short. Meanwhile, only 47% of trader set up orders are to buy the metal.
OANDA Gold traders remain with a strong bullish outlook, as open positions are 71% long on Monday. In the meantime, SAXO bank sentiment is 55% bullish.