- SWFX traders are 54% bearish
- 55.98% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,286.83
- Upcoming Events: US CPI and Cre CPI
The yellow metal continues to surge. Next target is the 1,290 mark. Various clues indicate that there will be no resistance on the commodity price's way to the just mentioned notable level.
The Labour Department revealed that the US Producer Prices Index dropped 0.1%, compared with a 0.1% increase in June. The PPI marked the strongest fall since August 2016, affected by diminished services costs. Despite the weaker correlation between producer prices and consumer prices, the reported drop could raise concerns over the further deceleration in the inflation growth, which would delay the next interest rate hike. In this regard, the Federal Reserve is more likely to raise rates no sooner than in December.
United States Consumer Price Index
On Friday the focus will be on the US Consumer Price Index publication. The data will be released in two sets. One will be the simple CPI and the second one will be the Core CPI. Both should be watched. The data release will be covered and made simple to understand by the Dukascopy Research Team on the bank's webinar platform. The coverage will start at 12:20 GMT, and the data will be published at 12:30 GMT.
XAU/USD continues to climb
The yellow metal's price has broken past the 1,280 mark, which managed to hold off the metal for a couple of hours. On Friday morning, an ascending pattern was noticed. It can be mapped by connecting the high levels of early August 8 trading hours and the early high level of August 10. In that way the resistance line can be observed. However, the possible support line of a channel might be pinpointed by setting the parallel line at the August 8 low level. In the meantime, it can be observed on various charts that there are no notable resistance levels until the 1,290 mark.
Hourly Chart
The Daily chart reveals that the pair is steadily approaching the 1,290 mark, as the closest resistance is the weekly R3 at 1,291.07 mark. Meanwhile, it has to be noted that the massive scale descending trend line was passed.Daily Chart
Markets inclined to the bullish side
Traders of Dukascopy remain in the neutral zone, as 54% of open positions are short. Meanwhile, in regards to the pending commands, bulls are dominating with 56% of orders set to buy the metal.
OANDA Gold traders remain bullish, as open positions are 56% long. In the meantime, SAXO bank traders have become neutral, as 50.04% of open positions are long.