The bullion gained strength in the aftermath of events in the US. However, the path downwards seems to be about to be resumed. As the FBI Director Jame Comey got fired, the US Dollar declined, which propelled the yellow metal's price higher. However, as the bullion hit the upper trend line of a descending channel pattern, it began a decline.
The number of job openings in the US rose in March, according to the JOLTS monthly report. Data from the US Bureau of Labour Statistics released on Tuesday showed that the US job openings increased to 5.74M over the course of March, following the previous month's downwardly revised figure of 5.68M. Meanwhile, analysts anticipated a slight decrease to 5.67M. Job openings grew across business and professional services as well as in local and state government education, while they declined in education services.
Upcoming events: Draghi and US Imports
Gold bounces higher on fundamentals
Although the yellow metal had passed the support cluster near the 1,220 mark on Tuesday, it traded back above it on Wednesday morning. The reason for the sudden rebound, which occurred late in the Tuesday's session, was the slight decline of the US Dollar caused by US President Donald Trump firing the Director of FBI. However, the yellow metal is still set to decline, and yesterday's move showed that the support cluster can be passed. Due to that it is assumed that the cluster at 1,220 will be passed and the bullion will decline down to the weekly S1, which is located at the 1,212.68 mark.
Daily chart
Hourly chart
Bulls show dominance
Traders remain neutral on the metal. However, 65% of SWFX trader set up orders are to buy the metal.
OANDA Gold traders remain bullish, as open positions are 70.77% long on Wednesday, compared to 70.15% previously. Meanwhile, traders of SAXO bank remain firm, as 68.78% of open positions are long, compared to 69.21% positions on Tuesday.
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 10 and May 10 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, 37% (+2%) of those surveyed reckon the metal will trade in the range between 1,200 and 1,350 over the next three months.