The yellow metal is expecting fundamental news regarding FOMC Meeting Minutes. Meanwhile, it can be observed that the stagnation process has already started in the wake of above fundamentals.
New home sales in the United States dropped more than expected last month, probably amid weaker demand. The Department of Commerce reported on Tuesday that sales of new houses dropped 11.4% to a seasonally adjusted annualised pace of 569K units in April, following the prior month's upwardly revised pace of 642K units, the highest since October 2007, and falling behind expectations for a decrease to a 611K-unit pace. On an annual basis, new home sales were up 0.5% in April. The average selling price dropped to $309.2K in April from $318.7K seen in the preceding month. Despite April's unexpected drop, analysts suggested that the housing market maintained its momentum and would continue growing in the upcoming months, supported by low mortgage rates.
FOMC Meeting Minutes in focus
Gold remains above 1,250 mark
The yellow metal's price remains above the 1,250 mark, as the strong support cluster just below that level holds its ground. However, fundamental shifts in the market are possible, as US monetary policy makers will affect the strength of the bullion from the US Dollar's side. The FOMC meeting minutes will reveal, how many and what kind of Federal Funds Rate decisions might take place in the future. Although, from a technical perspective the surge of the bullion should continue, as the SMAs should push it higher soon.
Daily chart
Hourly chart
SWFX market contradicts the rest
SWFX market sentiment remains almost neutral, as 52% of open positions are short. However, 67% of trader set up orders are to buy the bullion.
OANDA Gold traders are bullish, as open positions are 63.75% long on Wednesday, compared to 64.63% previously. Meanwhile, traders of SAXO bank are less bullish, as 54.28% of open positions are long, compared to 53.69% positions on Tuesday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being near 1,350 in late August
Traders who were asked regarding their longer-term views on gold between April 24 and May 24 expect, on average, to see the metal just below 1,350 in late August. Generally, 48% (-2%) of participants believe the price will be above 1,350 in ninety days. Meanwhile, 36% (-1%) of those surveyed reckon the metal will trade in the range between 1,200 and 1,350 over the next three months.