- SWFX traders are 52% bearish
- 55.70% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,283.26
- Upcoming Events: ECB Monetary Policy Meeting Accounts; US Unemployment Claims; US Capacity Utilization Rate; US Industrial Production
The bullion has rebounded against a previously described cluster of support. The next target of the bullion is the monthly R1 at the 1,292.91 However, there are other various aspects that need to be taken into account.
The Commerce Department revealed that retail sales in the United States recorder the biggest increase in the last seven months, surging 0.6% month-over-month in July and following an upwardly revised gain of 0.3% in the prior month.
July's upbeat figures suggested that the economy kept gaining momentum in the Q3 amid higher confidence in the country's economic outlook. Meanwhile, the Federal Reserve became less likely to delay the next interest rate increase until 2018.
Various US data releases
During the day's trading session there are some US data releases about to occur. The US Unemployment Claims and Philly Fed Manufacturing Index will be published at 12:30 GMT. The release might cause a medium impact on the financial markets. In addition to that, at 13:15 GMT the US Capacity Utilization Rate and Industrial Production will be released. These data sets are of minor impact and are unlikely to cause volatility.
XAU/USD rebounds against 1,270 level
The yellow metal bounced off the support cluster just below the 1,270 mark, as it was expected on Thursday morning. As a result of the rebound, the pair broke the medium term channel down pattern. On Thursday morning the possible borders of a narrow ranged channel up pattern were spotted.
However, it is most likely that the channel is just a representation of the first move in the borders of another medium term pattern. Although, a forecast for Thursday can be made easily.
The metal is most likely going to surge up to the 1,292.91 level, where the next notable resistance level is located at. If it is broken, the commodity price might reach the 1,300 mark.
Hourly Chart
The daily timeframe chart has turned out to be more helpful in the last 24 hours. On Thursday it shows that the monthly R1 might actually hold its ground, as it has done so previously. However, the previous time the monthly level of significance was strengthened by the resistance of the active ascending channel pattern.Daily Chart
Markets inclined to the bullish side
Traders of Dukascopy remain in the neutral zone, as 52% of open positions are short. Meanwhile, trader set up pending commands are 55.70% bullish.
OANDA Gold traders are almost neutral, as open positions are 51.88% long. In addition, SAXO bank traders also remain close to being neutral, as 50.62% of open positions are long.