- SWFX market sentiment is 61% bullish
- 54% of pending orders in 1000-pip range are set to BUY Gold
- US data coming in at 12:30 GMT
The bullion gained some ground on Thursday after the massive fall experienced previously.
Oil prices dropped down after US Crude Oil Inventories data release on Thursday at 15:00 GMT. The one-minute candle lost 91 pips, or 1.24% to continue fluctuating in 72.315 area.
The Energy Information Administration released the US Crude Levels data that came out better-than-expected of 1.2M, compare to forecasted negative 4.4M.
Head of commodities strategy at PNB Paribas Harry Tchilinguirian stands: "When there is consolidation in the market, there is also the expectation of an eventual price breakout in either direction. So in the options market, the volatility gets bid up,"
US CPI data sets
On Thursday the main event for the US data releases this week will take place. Namely, join for the webinar at 12:20 GMT to see the coverage of the US CPI and Core CPI, which will be out at 12:30 GMT.
XAU/USD regains some losses
The yellow metal's price began to surge at midnight to Thursday, which lasted until the middle of the day's trading session. However, that was not expected to last.
On the hourly chart it could be clearly observable that the commodity still remained in a junior descending pattern, whose upper trend line was set to provide resistance to the bullion. Moreover, the various hourly simple moving averages were approaching the trend line from the north.
Due to these reasons combined it is assumed that the 1,236.00 mark, where a historical low is located at, will be targeted next.
Hourly Chart
The surge is pretty normal from the perspective of the daily chart. Namely, a rebound is occurring in the borders of a dominant descending pattern.
The metal's price is aiming to reach the resistance of the monthly PP, which is located at the 1,270.00 mark.
Daily Chart
Retail traders are riding the surge
63% open positions of SWFX market traders were long during the midday hours. The Swiss Market sentiment previously was 59% long.
Meanwhile, trader set up orders are set to buy the metal in 54% of all cases. The orders had suddenly dropped on Thursday, as previously they spent the week near the 60% bullish zone.
The data reveals that although the bullion has retreated, retail traders have even opened new long positions in the expectations of a surge. Most likely, most of the traders see the continuation of a decline as a statistic improbability.
OANDA traders are bullish on the commodity with 82% of open positions being long on the XAU/USD pair today.
At the same time, Saxo Bank traders were likewise bullish with 72% long positions. The bank's traders have not changed their opinion since Monday.