Gold waits for resistance

Note: This section contains information in English only.
Source: Dukascopy Bank SA

Since Monday morning gold has continued to trade sideways in the range between 1,382.50 and 1,395.00.

In general, the metal's price was expected to be pushed down by the technical resistance of the 55 and 100-hour simple moving averages.

Latest Fundamental Event Report

Bureau of Economic Analysis released the US Final GDP data, which came out in line with expectations of 3.1%.

According to the official release: "The first-quarter percent change in real GDP was the same as previously estimated, reflecting upward revisions to non-residential fixed investment, exports, state and local government spending, and residential fixed investment that were offset by downward revisions to PCE and inventory investment, and an upward revision to imports."

Economic Calendar Analysis


On Wednesday, the ISM Non-Manufacturing PMI will be published at 14:00 GMT.

For this pair the week will end with the US Employment data sets – the Average Earnings, Unemployment Rate and Non-Farm Employment Change.

XAU/USD short-term forecast

The yellow metal's price is trading in the range between 1,382.50 and 1,395.00.

In general, the rate is expected to remain in this range until the resistance of the 55 and 100-hour simple moving averages approaches. The technical resistance of these levels is expected to push the price through the support of the monthly pivot point at 1,385.00.

On the other hand, the SMAs might fail and the metal will approach the upper trend line of a descending channel pattern near 1,400.00.

Hourly Chart



On the daily chart, it can be observed that the decision to mark historical high levels was a correct one.

Namely, one can observe that the zone surrounding the August 2013 high level provided resistance to the commodity price.

Daily Chart


Traders are neutral on gold

Since Monday, on the Swiss Foreign Exchange 53% of open gold position volume was in short positions.

Meanwhile, in the 1000 base point range around the current metal's price the orders were also neutral. 50% of orders were set to sell and 50% of orders were to buy.

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