The yellow metal's price seems to have started a period of hibernation before the French presidential election. Not only the commodity price has decreased volatility, compared to the start of the week, but also from a technical perspective the metal's price is being squeezed in by various levels of significance on the smaller timeframe charts.
US manufacturing activity in the Mid-Atlantic region slowed markedly in April, official figures revealed on Thursday. The Philadelphia Federal Reserve reported its Manufacturing Index dropped to 22.0 in the reported month, following March's reading of 32.8 and falling behind analysts' expectations for a decrease to 25.6 points. Analysts stated that business optimism prompted by Donald Trump's win in the presidential election started to fade, putting downward pressure on business activity.
Upcoming events: Markets concentrate on French Election
Gold remains above retracement level
During the early hours of Friday's trading session the yellow metal continued trading above the 61.80% Fibonacci retracement level, which is located at the 1,278.73 level. The bullion has lost its momentum due to the fact that the markets are expecting the results of the French presidential election on Sunday. Meanwhile, from a technical perspective, a medium term ascending channel's lower trend line had closed in on the commodity price from the downside. The trend line was located at the 1,276.95 level on Friday.
Daily chart
Hourly chart
Markets remain neutral
Traders are shorting the metal, as 57% of open positions are short. However, 64% of trader set up orders are to buy the metal.
OANDA Gold traders are neutral regarding the metal, as open positions are 51.30% long on Friday, compared to 51.69% previously. Meanwhile, traders of SAXO bank remain neutral, as 50.61% of open positions are long, compared to 51.29% short positions on Thursday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of Gold being above 1,300 in July
Traders who were asked regarding their longer-term views on gold between March 21 and April 21 expect, on average, to see the metal near 1,300 in July. Generally, 54% (+1%) of participants believe the price will be above 1,300 in ninety days. Alongside, 33% (-2%) of those surveyed reckon the currencies will trade in the range between 1,100 and 1,300 over the next three months.