- SWFX market sentiment is 73% bullish
- 61% of pending orders in 1000-pip range are set to BUY Gold
- Calendar review at 12:00 GMT
On Monday, the long ago set target of the 1,200.00 mark was almost reached. Namely, as this review was compiled, the commodity price traded at the 1,201.70 level. Moreover, it had no support as low as the 1,192.00 level.
Oil prices decreased after US Crude Oil Inventories data release on Wednesday at 14:30 GMT. The one-minute candle lost 34 pips, or 0.50%, but the post-reaction caused a drop of 45 pips or 0.66%. In next hours the market recovered to continue fluctuating in the 67.8 area.
The Energy Information Administration released the US Crude Inventories data that came out higher-than-expected. Instead of the expected negative 2.8 million, the data came out only 1.4 million negative.
No data on Monday
The economic calendar is empty for Monday. However, join other Dukascopy webinars to spend the time productively. For example, the weekly economic calendar review will start on the bank's live webinar platform at 12:00 GMT.
XAU/USD continues consolidation
Gold was consolidating against the US Dollar last week, thus remaining between the 1,206.00 mark and the 61.80% Fibonacci retracement at 1,216.00. The pair failed to surpass the latter, as it was reinforced by the 200-hour and the 55-period (4H) SMAs. As a result, the yellow metal had fallen back to the 1,208.00 mark by Monday morning.
Technical indicators on the 4H chart have already started to recover. It means that shorter-term signals should soon follow. In order to accelerate, bulls have to overcome the 55-, 100– and 200-hour SMAs and the weekly resistance provided by the aforementioned Fibo level. This should pave the way for a surge up to 1,235.00 this week.
In case of a fall today, 1,200.00 should remain intact, as the senior channel and the monthly S1 are located there.
Hourly Chart
Strong bearish momentum has guided XAU/USD during the last months. This has resulted in Gold losing already 12.00% against the US Dollar.
The metal made an attempt to regain some ground last week. However, it failed and on Monday there were no longer support levels available to the bullion that could stop it from plunging further.
Daily Chart
Massive amount of long gold positions
73% of SWFX market traders are going long on the pair. Although, only 51% of trader set up orders are set to buy the bullion.
OANDA traders are also bullish on the commodity with 83% of open positions being long today. Saxo Bank traders share the same sentiment with 73% long positions.
There are more than one conclusions, which can be made from the information. First, the larger brokerages with more long term players are more bullish on gold.
Second, the retail traders no longer have set up buy orders that would provide the needed momentum to push the commodity price higher in the near term future.