- 52% of all SWFX open positions are short, as the sentiment became bearish on Monday
- Prices fluctuating below 1,350 level on Monday morning
- Gold has set a northward direction
- Economic events to watch over the next 24 hours: US PMI Manufacturing (July); US ISM Manufacturing
The number of people filing for unemployment benefits in the United States last week rose more than expected, fresh figures from the Department of Labor revealed on Thursday. Initial jobless claims grew by 14,000 to 266,000 in the week ended July 23, compared to the previous week's revised figure of 252,000, while market analysts expected jobless claims to rise by 9,000 to 261,000 in the reported week. Nevertheless, the less volatile and closely watched four-week moving average fell 1,000 to 256,500 in the preceding week, the lowest level since April. Furthermore, this week marked the 73rd consecutive week of initial jobless claims remaining below the 300,000 level, the longest streak since 1973. Meanwhile, the number of people continuing to receive unemployment aid increased by 7,000 to 2.14 million in the week ended July 16, whereas the four-week average of continuing jobless claims dropped to the lowest level since November 2000. The Federal Reserve said on Wednesday that conditions in the US labor market improved significantly and that the latest indicators pointed to some increase in labor utilization. As markets expected, the US central bank left its key interest rates unchanged at its meeting on July 27, citing concerns over low inflation.
For the second consecutive month, orders for long lasting factory goods made in the United States fell, fresh figures from the US Census Bureau revealed on Wednesday. Excluding transportation equipment, new orders for durable goods fell 0.5% on a seasonally adjusted basis in June, compared to the previous month's downwardly revised drop of 0.4%, whereas market analysts expected core durable goods orders to advance 0.3% in the reported month. Overall orders for US manufactured durable goods decreased 4.0% in June, following last month's revised fall of 2.3% and falling behind the 1.1% drop forecast. Other data released by the Energy Information Association on Wednesday showed that US crude oil inventories added 1.7 million barrels in the week ended July 22, after the 2.3 million barrel fall registered in the previous seven days, while economic desks penciled in a decrease of 2.1 million barrels in the reported period. The durable orders report stands in contrast to other recent data suggesting the US manufacturing sector stabilized in June. A Federal Reserve report showed manufacturing output was modestly above year-earlier levels in June..
Upcoming fundamentals: US PMI Manufacturing and ISM Manufacturing
As it is common, Gold prices are affected by the strength of the Greenback. The US Dollar on Monday will be affected by the US PMI Manufacturing at 13:45 GMT. Afterwards the US ISM Manufacturing will be released at 14:00 GMT.
Gold trading at 1,350 on Monday
Daily chart: The yellow metal surged on Friday, as it went from the level of 1,335.75 at the start of the day's trading session to 1,350.10. On Monday morning the metal was trading at 1,349.62 by 5:30 GMT. The bullion started new week and month above the weekly and monthly pivot points respectively at 1,339.02 and 1,345.31, which indicates at a bullish market sentiment. In addition, gold is not facing any resistance up to the level of 1,366.06, where the weekly R1 is located at.Daily chart
Hourly chart: The hourly chart shows that the yellow metal moved slightly lower at the start of Friday's trading session. However, the metal rebounded against the lower Bollinger band at 1,330.84 around 8:00 GMT. Afterwards, the commodity surged by moving very close to the upper Bollinger band until the end of Friday's trading session. On Monday morning, the price has mostly remained unchanged, as it is fluctuating around the level of 1,350.
Hourly chart
SWFX traders become bearish on Monday
Meanwhile, OANDA Bank clients are bullish with respect to the bullion, precisely in 62.18%. In the meantime, SAXO bank clients are less bullish on the yellow metal, as 58.01% of positions are long.