The bullion was regaining its previous losses on Monday morning. However the surge seemed to be unsustainable. That was because the surge was caused by the buying of the bullion in the aftermath of the French Presidential Election. Although, as Macron won, no fundamental large changes are expected in the financial markets. No run to safety or a risk on sentiment was induced.
The US unemployment rate dropped unexpectedly last month, as companies created more jobs than expected. The Department of Labour reported that US firms added 211K jobs to the economy in April, following the preceding month's revised down increase of 79K jobs and surpassing analysts' expectations for a 194K gain. Data also showed that the unemployment rate fell to 4.4%, down from March's 4.5%, whereas markets anticipated an acceleration to 4.6%.
Upcoming events: Minor US data
Gold recovers on Monday
After a low opening and touching the 1,221.50 level on Monday morning the yellow metal regained its losses in the early hours of the day's trading session. However, the bullion is still likely to continue the retreat, as the Macron victory in the French Presidential Election is seen as a sign of minor changes in the fundamentals in the financial markets, which could affect the price of the yellow metal. Due to that reason the commodity price might retreat down to the next support cluster, which begins just below the 1,220 mark.
Daily chart
Hourly chart
Bulls show dominance
Traders are neutral bearish, as 51% of open positions are short. However, 68% of trader set up orders are to buy the metal.
OANDA Gold traders have increased their bullish position amount, as open positions are 69.78% long on Monday, compared to 66.85% previously. Meanwhile, traders of SAXO bank have done the same, as 69.31% of open positions are long, compared to 65.15% positions on Friday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being below 1,350 in early August
Traders who were asked regarding their longer-term views on gold between April 8 and May 8 expect, on average, to see the metal near 1,350 in early August. Generally, 45% (-2%) of participants believe the price will be above 1,350 in ninety days. Alongside, 33% (-8%) of those surveyed reckon the metal will trade in the range between 1,200 and 1,350 over the next three months.