- SWFX traders are 55% bullish
- 57% of pending commands are to buy the metal
- The bullion opened at 1,231.32
- Upcoming Events: US PPI; Fed Chairwoman Janet Yellen's speech; FOMC Member's Kaplan's speech
The number of Americans filing for first-time unemployment benefits declined to an almost 43-year low, official figure revealed on Thursday. Last week's drop in claims was driven by tightening labor market, which is likely to prompt wage growth. According to the US Department of Labor, national jobless claims declined 12,000, to 234,000, during the week ending February 4 from the preceding week's upwardly revised 246,000. Meanwhile, economists anticipated a slighter deceleration to 250,000 during the reported period. Filings have been below 300,000 for 101 straight weeks — the longest streak since 1973.
In the meantime, the less volatile four-week moving average of initial claims dropped 3,750 to 244,250, the lowest level since November. Furthermore, continuing claims increased 15,000 to 2.08 million during the week ended January 28, while their four-week moving average fell 3,750 to 2.08 million. These claims, reported with a one-week delay, reflect the number of people already collecting unemployment benefits. Other data released by the Commerce Department on Tuesday showed US wholesale inventories climbed 1% in December, following a similar gain in November. Excluding automobiles, wholesale stocks grew 0.9% in December. The change in private inventories contributed 1% to GDP growth in the final quarter of 2016.
Upcoming events: Data releases on Tuesday
There are no data releases set for Monday, February 13. However, on Valentine's Day, statisticians are set to release a lot of macroeconomic data. As early risers, the Germans will publish the German Preliminary quarterly GDP at 7:00 GMT. Afterwards, at 10:00 GMT the EU Flash GDP together with the German ZEW Economic Sentiment will be published. In the second half of Tuesday's trading session information from the US will be coming out. At 13:30 GMT US PPI data will be published. Later in the day members from the Federal reserve are set to speak, as at 15:00 GMT Janet Yellen will give a speech and at 18:00 GMT FOMC Member Kaplan will speak.
XAU/USD starts week below resistance
Daily chart: The yellow metal began the week near the 1,230 level, where it traded rather flat during the early hours of Monday's trading session. The bullion began the week below the newly calculated weekly PP, which is located at 1,232.24. It is most likely that the commodity price will continue to decline by the end of the day, as the closest support level is located at 1,219.77, where the weekly S1 is located at. In addition, the weekly S1 is supported by the 38.20% Fibo at 1,219.20 level. After encounteringDaily chart
Hourly chart: The hourly chart shows that the yellow metal found support in the 200-hour SMA on Friday. However, the rebound was stopped by the 55 and 100-hour SMAs together with the support line of the previously active ascending channel pattern. In general, the hourly chart and the levels of significance found on it are supporting the previously made forecast. However, it shows that the 200-hour SMA at 1,225.67 is set to hinder the fall to the 1,220 level.
Hourly chart
SWFX traders remain bullish
OANDA Gold traders have a continued to decrease their bullish outlook on the yellow metal, as open positions were 64% bullish on Monday, compared to the 80% a few weeks ago. Meanwhile, traders of SAXO bank have decreased their bullish outlook, regarding the yellow metal, as 60.02% of open positions are bullish, compared to 62.99% yesterday.