Due to the French election induced certainty the yellow metal has fallen. However, the future direction of the metal seems unclear at the moment, as the bullion shows various signals from both technical and fundamental perspective.
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: FOMC Member Kashkari
Gold trades near 1,270 on Monday
On Monday morning the yellow metal was recovering after the low opening and fall caused by the French presidential election. The bullion almost touched the 1,265 mark before it rebounded and surged up to the 1,275 level, where close by two resistance levels are located at. However, the yellow metal's price still remains in the borders of a medium scale ascending channel pattern. The commodity price has touched the lower trend line of the channel, which means that the bullion is likely to surge in the near future.
Daily chart
Hourly chart
Bulls show dominance
SWFX market sentiment remains bearish, as 56% of open positions are short. However, 65% of trader set up orders are to buy.
OANDA Gold traders are neutral regarding the metal, as open positions are 56.60% long on Monday, compared to 51.30% previously. Meanwhile, traders of SAXO bank remain neutral, as 54.93% of open positions are long, compared to 50.61% short positions on Friday.
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 24 and April 24 expect, on average, to see the metal near 1,300 in July. Generally, 52% (-2%) of participants believe the price will be above 1,300 in ninety days. Alongside, 37% (+4%) of those surveyed reckon the currencies will trade in the range between 1,100 and 1,300 over the next three months.