- SWFX market sentiment is 74% bullish
- Pending orders in the 1000-pip range are set to sell in 59% of all cases
- Canadian data ends the week
The yellow metal continues to trade in limbo around the 1,230.00 mark. Meanwhile, it seems that the metal's price is ignoring technical indicators.
Latest Fundamental Event
Oil price have decreased after the US Crude Oil Inventories data release on Wednesday at 14:30 GMT. The one-minute candle lost 68 pips, or 0.96% right after the data release. In the next minutes the rate was trading at the 70.10 level.
The Energy Information Administration released the US Crude Inventories data that came out lower-than-expected of 6.5M, compared to forecasted 1.6M
"A tick higher in refining activity and a drop in production due to hurricane activity in the Gulf was not enough to halt a fourth consecutive climb in (inventories)- and a solid one at that," said Matt Smith, director of commodity research at ClipperData in Louisville, Kentucky.
No data for gold
Macroeconomic data release traders are still set to be active this week. Data is set to be published in Canada.The data release with the biggest impact will be on Friday. The Canadian statisticians will publish the Canadian CPI and Core Retail Sales at 12:30 GMT.
The data release is expected to cause a sudden bounce in the USD of almost 80 base points.
XAU/USD short term forecast
In regards to the near-term future, most likely, the gold will break the resistance of the monthly R2 at 1,227.33 mark to surge to the upper boundary of the ascending dominant channel line at 1,235.63 mark.
On the other side, the rate might be resisted by the monthly R2 at 1,227.33 mark to push the rate to pass the 55-hour and the 100-hour SMAs to trade at 1,220.00 level.
Hourly Chart
Dukascopy Analysts adjusted the dominant ascending pattern's resistance line to match the recent booked high. It can be seen that, by doing the adjustment, a pattern with more confirmation points can be seen.
If this pattern guides the rate in the near future, the metal should decline or trade sideways until the end of this year.
Daily Chart
Sentiment remains long on gold
On Friday, 72% of traders were long. The sentiment has been near the 70% mark since last Friday,
Trader set up pending orders are still mostly set up to buy more gold. 70% of all orders are set to buy.
It seems that Duakscopy retail traders and gold holders still intend to buy more gold, as they expect it to gain even more value.