After the release of the FOMC Meeting Minutes the bullion is continuing on its path upwards. However, Due to overextending the surge a consolidation began on Thursday morning. Meanwhile, it can be observed on various timeframe charts that the commodity price is most likely going to soon head for the 1,270 mark.
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.
US Unemployment Claims
Gold remains below 1,260 level
As the FOMC Meeting Minutes did not change the opinion of the market participants in regards to US rate hikes this year, the bullion began to regain previously lost ground. However, somewhere around midnight the situation has slightly changed. During the early hours of Thursday's trading session the commodity price had slightly declined, as it must have encountered a smaller timeframe chart's resistance, which keeps the metal form jumping. However, it is most likely that the surge will resume and the 1,270 mark will be reached.
Daily chart
Hourly chart
Neutral opinion can be observed
SWFX market sentiment remains almost neutral, as 51% of open positions are short. However, 68% of trader set up orders are to buy the bullion.
OANDA Gold traders remain bullish, as open positions are 65.39% long on Thursday, compared to 63.75% previously. Meanwhile, traders of SAXO bank are joining the SWFX traders, as 50.28% of open positions are long, compared to 54.28% positions on Wednesday.
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 25 and May 25 expect, on average, to see the metal just below 1,350 by September. Generally, 49% (+1%) of participants believe the price will be above 1,350 in ninety days. Meanwhile, 34% (-2%) of those surveyed reckon the metal will trade in the range between 1,200 and 1,350 over the next three months.