- SWFX traders are 51% bearish
- 55% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,243.80
- Upcoming Events: A quiet session after ECB
The bullion has found support and has been propelled higher by fundamental events. In general, it can be expected that the commodity price will reach for the 1,250 mark, where it is likely going to bounce off a strong resistance cluster.
Consumer prices in the United States were flat, while retail sales dropped for the second consecutive month in June. The Labour Department reported on Friday that its CPI registered an unchanged reading in the observed month, missing market expectations for a 0.1% rise, as the cost of mobile services and gasoline declining. On a yearly basis, the index surged 1.6% in June, continuing to ease from February's 2.7%, when it showed the strongest gain in five years.
An empty session
After the jump caused by the ECB on various pairs on Thursday, Friday will be quiet. However, swing traders will still have something to do. Dukascopy Research Team will host a live webinar at 12:00 GMT. In the webinar the Canadian CPI and Retail Sales data sets will be covered. Meanwhile, there does not seem to be anything else notable on the economic calendars.
XAU/USD near 1,250 mark
The yellow metal continues to surprise the bulls. The commodity price was reaching for the 1,250 mark on Friday morning. It was initially expected on Thursday that the metal will decline down to the lower trend line of a medium ascending channel pattern. However, as the metal fluctuated between the 100 and 55-hour SMAs, a fundamental event took place, which influenced the price of gold. As the ECB press conference took place, the massive buying of the Euro and simultaneous selling of the US Dollar caused a spill over. That resulted into the metal breaking the resistance of the 55-hour SMA. Due to that it can be observed on Friday morning that the bullion is most likely going to reach above the 1,250 levels on Friday, as there are no notable strong resistance levels, which might stop it.
Hourly Chart
On the daily timeframe it can be observed that the 55 and 100-day SMAs above 1,245 mark continue to provide resistance. However, as the resistance of the simple moving averages has been pierced, they are unlikely to reverse the pair's direction on their own.Daily Chart
SWFX traders almost neutral
Traders of Dukascopy have are no longer neutral bearish, as 51% of open positions are short. Meanwhile, 55% of trader set up orders are to buy the metal.
OANDA Gold traders remain with a bullish outlook, as open positions are 74.40% long on Friday. In the meantime, SAXO bank sentiment is 61.34% bullish.