- SWFX market sentiment is 72% bullish
- 60% of pending orders in 1000-pip range are set to BUY Gold
- No data releases will impact gold prices this week
Gold prices remained near the 1,200.00 level on Wednesday. Although, the commodity price had once more passed the resistance provided by three simple moving averages. Because of this fact the rate was expected to surge.
Oil prices have decreased after the US Crude Oil Inventories data release on Wednesday at 14:30 GMT. The one-minute candle lost 22 pips or 0.31% after which, the rate surged upwards to trade at the 70.80 level.
The Energy Information Administration released the US Crude Levels data that came out lower-than-expected of negative 5.3M, compare to forecasted negative 1.3M.
The Dukascopy analysts were not expecting the price drop of negative 22 pips or 0.31% at the release time. The crew predicted the price surge at the release time, but the expectations were not fulfilled this time.
The released number is putting stockpiles 3% below their five-year average for the US Crude Oil Inventory according to the Energy Information Administration.
Almost empty week for macroeconomics
There will be no data releases that might impact the strength of the US Dollar and with it the prices of gold. Although, macroeconomic data traders will have other data releases to trade.
On Wednesday, at 14:30 GMT the weekly US Crude Oil Inventories data will be published. As usual, it is expected to cause fluctuations in the 50 base point range on the oil price charts.
On Thursday, all attention of macroeconomic data release traders will be set on the UK Retail Sales data at 08:30 GMT.
The week's macroeconomic releases will end on Friday. On that day the Canadian CPI and Retail Sales data sets will influence the strength of the Canadian Dollar at 12:30 GMT.
XAU/USD short term forecast
In regards to the near future, the rate will surge upwards due to an absence of the technical indicators, which could stop the rate from the surge during the following trading days.
Besides, the technical indicators are showing that the yellow metal will move sideways during the trading day. Moreover, gold is supported by the simple moving averages, which will push the yellow metal to surge upwards.
Hourly Chart
The recent surge has provided the opportunity to use the low levels for the drawing of a new ascending channel pattern. Although, note that fundamental events might once more push the yellow metal prices in a way that smashes technical chart patterns.
In addition, note that there are larger scale resistance levels on the chart. For example, the surge recently was stopped by the 1,212.70 level, where a 50.00% Fibonacci retracement level is located at. Moreover, the 55-day simple moving average was approaching the commodity price near the 1,212.85 level.
Daily Chart
Markets remain long on gold
Swiss traders remained long on gold, as 72% of trader open positions were long on Wednesday.
Meanwhile, most trader set up pending orders are set to buy the metal by closing short positions or opening additional long positions. Namely, 64% of all trader set up orders are set to buy the metal under various conditions.
This indicates that the retail sector might push the price higher, in the near future.