- SWFX traders are 52% bullish
- 64% of pending commands are to buy the metal
- The bullion opened at 1,228.54
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Upcoming Events: Empire State Manufacturing Index
The surge of the yellow metal continues in accordance with the set pattern. Moreover, the resistance of the 100-day SMA, which kept the metal lower on Friday has been broken. The yellow metal is highly likely going to surge up to the newly calculated weekly R1, which is located at the 1,239.37 level.
Consumer prices in the United States advanced last month but less than analysts expected. The Labour Department reported on Friday that its CPI rose 0.2% in April, following the preceding month's drop of 0.3% but missing expectations for a 0.3% gain. Furthermore, the so-called core inflation rate climbed 0.1% last month, compared to the previous month's fall of 0.1%, whereas analysts anticipated an increase of 0.2%. However, both figures pointed to a tightening labour market and solid inflation growth, suggesting that the Federal Reserve will likely raise interest rates at its June meeting.
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Upcoming events: Empire State Index
There is only one data release scheduled for Monday, which is worth mentioning. It is the release of the Empire State Manufacturing Index. The release will occur at 12:30 GMT. However, it will not be covered by the Dukascopy Research team, as it is considered a low impact event, which is unlikely going to cause an increase in volatility of the financial markets.
Read More: Fundamental Analysis
Gold continues higher
On Monday morning the yellow metal continued to score gains against the US Dollar, as the bullion passed a significant resistance level. The commodity price surged to trade above the 100-day SMA, which is located at the 1,229.29 mark. Due to that fact the bullion has a large free range for a surge. The closest resistance level was the weekly R1, which is located at the 1,239.37 level. It is highly possible that the resistance will be reached during this week. However, smaller timeframe resistance levels might hold back the metal.
Daily chart
The hourly chart shows that the previously discovered ascending channel pattern persists and it guides the bullion in a small incline upwards. In addition, due to the fact that the commodity price passed the resistance put up by the 200-hour SMA, on the bullion's way to the weekly R1 stands only the upper Bollinger band of the hourly chart.Hourly chart
Read More: Technical Analysis
Bulls dominate
SWFX market sentiment remains almost neutral, as 52% of open positions are long. However, 64% of trader set up orders are to buy the metal.
OANDA Gold traders remain bullish, as open positions are 75.16% long on Monday, compared to 73.84% previously. Meanwhile, traders of SAXO bank have decreased their positive outlook, as 65.99% of open positions are long, compared to 68.03% positions on Friday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being below 1,350 in August
© Dukascopy Bank SATraders who were asked regarding their longer-term views on gold between April 15 and May 15 expect, on average, to see the metal near 1,350 in early August. Generally, 50% (+4%) of participants believe the price will be above 1,350 in ninety days. Alongside, 34% (-3%) of those surveyed reckon the metal will trade in the range between 1,200 and 1,350 over the next three months.