- SWFX market sentiment is 62% bullish
- Pending orders in the 1000-pip range are set to buy in 65%% of cases
- Gold has reached long term target at 1,260.00
The yellow metal has reached above the long targeted 1,260.00 level, which was broken, as the metal reached above 1,265.00 level. In general, the metal is expected to decline or trade sideways until next year.
Latest Fundamental Event
The oil price has appreciated after the US Crude Oil Inventories data release on Wednesday at 15:30 GMT. The one-minute candle gained 29 pips, or 0.60% right after the data release. In the next minutes, the rate was trading at the 47.80 level against the US Dollar.
The Energy Information Administration released the US Crude Inventories data that came out better-than-expected of negative 0.5M, compare to forecasted negative 2.7M.
John Kilduff, the partner at Again Capital Management in New York said, "There was an appreciable rise in demand for the diesel fuel category and a rather large drawdown in stocks. The crude oil drawdown, however, was much smaller-than-expected, which moderated the report, as did the large inventory increase at the Cushing delivery hub."
Week will end with US and Canadian data
The week's data will end at 13:30 GMT. At that time the Canadian Retail Sales and GDP data will be published. Simultaneously the US Durable Goods data sets and Final GDP will be released.The above mentioned data release will be covered by Dukascopy Analytics. The event can be watched on our YouTube channel.
XAU/USD short term forecast
For almost a month Dukascopy Analytics stated that on the larger scale the yellow metal is heading to the 1,260.00 level. The move has occurred and fully ended on Friday.
The bullion has surged above the resistance levels at 1,260.00 and even broken resistance levels at that level. The surge was stopped by the upper trend line of a medium term pattern.
In regards to the near term future, it is expected that the bullion will consolidate its gains. Meanwhile, Dukascopy Analytics are taking the next week off.
Hourly Chart
On the daily chart the borders of the large scale patterns can be observed more clearly. Besides that there is not much to add to the description of the daily chart.Daily Chart
Long profits being taken
Throughout the week traders were closing their long positions. On Friday, only 62% of trader open positions were long. Traders had decreased the proportion from more than 75% that was observable last week.
In the meantime, trader pending orders in the 1000-base point range were set to buy the metal in 65% of cases.
Profits have been taken during the recent decline. Meanwhile, traders are prepared to reopen the long positions to continue taking advantage of the surge.