The yellow metal has retreated down to the weekly S2 at the 1,263.56 level. Meanwhile, the future direction of the bullion is complicated. The bullion's price might pass the support and begin a decline down to the 1,253 mark, where the next support level is located at. On the other hand the commodity price might surge up to the 20-day SMA at 1,270.
The Conference Board Consumer Confidence Index dropped more than experts estimated. In April, it lost 3.8% and reached 120.3, thus, marking the first decline since January. The fall was mainly attributable to the less optimistic view of business conditions and the labour market in the upcoming six months. As a result, the number of respondents, who evaluated business conditions as "good", decreased from 32.4% to 30.2% and the share of those, who assessed the available number of jobs in the market as "plentiful", plunged from 31.8% to 30.8%. In addition, the number of people who evaluated business conditions as "bad" increased slightly from 13.1% to 13.8%.
Upcoming events: US Crude Oil Inventories
Gold falls below 1,265
The yellow metal's price has reached the second weekly support, which is located at the 1,263.56 level. If the bullion passes the support level, the commodity price is most likely going to retreat down to the combined support of the 200-day SMA at 1,263.35 and the weekly S3 at 1,252.84 level. On the other hand a rebound might occur. In the case of a rebound the bullion's price is most likely going to surge up to the 20-day SMA, which is located at the 1,269.90 level, and afterwards the weekly S1 at 1,274.27 would be the next target.
Daily chart
Hourly chart
Bulls show dominance
Trader open positions are 55% bearish. However, 60% of trader set up orders are to buy the metal.
OANDA Gold traders are bullish regarding the metal, as open positions are 59.15% long on Wednesday, compared to 56.03% previously. Meanwhile, traders of SAXO bank are also bullish, as 62.29% of open positions are long, compared to 53.52% positions on Tuesday.
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 26 and April 26 expect, on average, to see the metal near 1,300 in July. Generally, 55% of participants believe the price will be above 1,300 in ninety days. Alongside, 34% of those surveyed reckon the metal will trade in the range between 1,100 and 1,300 over the next three months.