- SWFX traders are 53% bearish
- 55.20% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,259.71
- Upcoming Events: FOMC Member Kashkari's Speech
The bullion has continued to lose value, as expected. However, the metal's price on Monday was showing signs that the decline might be over. Although, the lower trend line of the medium term channel up pattern was not touched.
The Labour Department revealed that the US economy created 209K positions in July, surpassing forecasts for a 185K increase. In the meantime, the unemployment rate dropped to 4.3% from 4.4% in the reported period, matching expectations. Strong figures in conjunction with 0.3% wage growth, the strongest gain since February, provided good signs to expect better CPI and PPI reports this week. In this context, the Federal Reserve would be reassured that further policy normalisation is reasonable, keeping additional rate hikes on the table.
Single Fed speech
During the next 24 hours there is only one event scheduled, which is worth being mentioned. At 17:25 GMT on Monday the FOMC Member Kashkari is set to give a public speech. However, the Fed speakers have begun leaking information so often that their impact is insignificant.
XAU/USD goes below 200-hour SMA
XAU/USD was not an exception for the strong appreciation of the US Dollar in the wake of solid employment data. As a result, the yellow metal fell below the 200-hour SMA into the bearish territory. Subsequently, the pair entered a consolidation period on Monday morning, thus fluctuating near the 1,257.80 mark. The given move has pushed the rate outside a minor channel down which was formed as a wave south in a senior ascending channel. Technical indicators signal to a potential near-term recovery that should push Gold back in the junior channel. Likewise, it is likely that it edges as high as the weekly PP at 1,262.80 and stops near the 200– and 55-hour SMAs. From the downside, the pair is supported by the weekly S1 at 1,251.28.
Hourly Chart
The daily chart has resumed to play a significant role in the forecasting of the yellow metal's future. It can be observed that the closest support to the metal on the daily chart is a combination of the weekly S1, 55 and 100-day SMAs. The cluster of significance is located just above the 1,250 mark.Daily Chart
SWFX traders bounce around neutral zone.
Traders of Dukascopy remain in the neutral zone, as 53% of open positions are short. Meanwhile, the bears are back in regards to set up orders, as 55% of pending commands are to sell the metal.
OANDA Gold traders remain bullish, as open positions are 53% long. In the meantime, SAXO bank sentiment is 59% bullish.