- SWFX traders are 53% bullish
- 59% of pending commands are to buy the metal
- The bullion opened at 1,251.76 on Tuesday
- Upcoming Events: US Preliminary GDP; US CB Consumer Confidence
New orders for US-made capital goods advanced more than expected in January due to strong demand for passenger airplanes and new bookings for fighter planes and related military equipment. According to the Commerce Department, total durable goods orders spiked 1.8% in the past month compared with a downwardly revised 0.8% reading registered in December. The main driver for the jump was a significant increase in orders for transportation goods which surged 6.0% in January. Orders excluding aircraft fell 0.2%, missing expectations for a 0.5% rise on the month. Moreover, there were notable decreases in orders for electrical equipment, appliances and components as well as computers and electronic products. In the meantime, non-defense capital goods orders went down 0.4%, following an upwardly revised 1.1% gain in December, while machinery orders soared 0.5%, giving a 4.3% annual gain which is likely to heighten confidence in manufacturing outlook.
Overall, strong durable goods report followed recent growth in consumer spending and home sales as the Greenback stabilized and oil prices resumed growing. In addition, the Trump administration plans to cut corporate taxes and diminish regulations are set to help businesses, though surrounding uncertainty might prevent proceeding with investments in the near term.
Upcoming events: US GDP in focus
The main event on Tuesday will be the release of the US Preliminary GDP, which is set to be published at 13:30 GMT. The data release will be covered by the Dukascopy research team on the live webinar. In addition, later in the day at 15:00 GMT the CB Consumer Confidence index will be published. However, it is most likely not going to affect the financial markets.
Gold remains above 1,250 level
Daily chart: The yellow metal on Tuesday morning was regaining some of the losses, which it suffered during Monday's trading. However, the losses suffered on Monday were most likely just a consolidation in the aftermath of the breakout to the upside, which occurred at the end of last week. It is most likely that the bullion will make another attempt at the resistance cluster, which it faces on Tuesday. The cluster is made up of the upper Bollinger band at 1,257.69 and the 200-day SMA at 1,260.23. On the other hand, the metal might seek more support in the 50.00% Fibo at 1,248.96 level.Daily chart
Hourly chart: The hourly chart reveals that the commodity price in the past 24 hours has been bouncing between the hourly Bollinger bands and no other levels of significance have influenced it. However, that has changed just recently, as the 55-hour SMA has provided resistance to the bullion, and together with the 20-hour SMA is actually pushing the commodity onto the 50.00% Fibonacci retracement level, which is located at 1,248.96.
Hourly chart
Traders still bullish on bullion
OANDA Gold traders have increased their bullish outlook on the yellow metal, as open positions have are 58.40% long, compared to 56.57% on Monday. In the meantime, traders of SAXO bank are now almost neutral on the metal, as 50.66% of open positions are long.