- SWFX traders are neutral
- 51% of pending orders are to sell the metal
- The bullion opened at 1,280.05
- Upcoming Events: US JOLTS Job Opening
For the bullion Tuesday is another session of major gains, as the metal touched the 1,290 mark during the early hours of the day's trading. If the yellow metal manages to break through the resistance of the monthly R1 at 1,291.60 and the weekly R2 at 1,293.85, the way up to the 1,307 level will be free.
Business activity in the US non-manufacturing sector fell last month but remained in the expansion territory for the 89th straight month. The Institute for Supply Management reported on Monday that its PMI for the US services sector dropped to 56.9 in May from the prior month's 57.5, whereas analysts anticipated a slighter decrease to 57.1 points during the reported month. The ISM said that 17 non-manufacturing industries reported growth last month.
US Jolts Job Openings
During Tuesday's trading session there is one data release scheduled, which might interest market participants. The reason for the possible interest is the fact that the data package has historically shown enough strength to cause fluctuations in the US Dollar value. The data will be the JOLTS Job Openings number at 14:00 GMT. However, it will not be covered live by the Dukascopy Research team.
XAU/USD continues to surge
After a rather flat Monday's trading session the yellow metal began a fast surge during the late hours of the day's trading. On Tuesday morning the bullion's price was located just below the 1,290 mark, and it could be observed that the commodity price faces no notable resistance up to the 1,291.60 level, where the monthly R1 is located at. Most likely the metal will pause near that mark, as the hourly Bollinger bands are indicating that the surge has been exhausted. Afterwards a short period of consolidation could take place, which would later on be replaced with a continuation of the climbing of the yellow metal's price. If the bullion could manage to pass the second weekly resistance at 1,293.85, the way up to the weekly R3 at the 1,307.66 mark would be free.
Hourly Chart
By paying more attention to the daily chart it is possible to conclude that not only the 1,300 mark, but also levels near the 1,330 mark might be reached by the end of June. However, there are still two resistance clusters, which will put up a fight near the 1,290 and 1,310 levels.
Daily Chart
Bulls remain dominant
SWFX traders have become neutral in regards to the metal. In addition, 51% of trader set up orders are to sell the metal.
OANDA Gold traders have decreased their bullish outlook, as open positions are 56.46% long on Tuesday, compared to 58.97% previously. Meanwhile, traders of SAXO bank have returned to the bearish side, as 54.29% of open positions are short, compared to only 50.86% on Monday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being near 1,350 in September
Traders who were asked regarding their longer-term views on gold between May 6 and June 6 expect, on average, to see the metal just below 1,350 in September. Generally, 45% (+2%) of participants believe the price will be above 1,350 in ninety days. Meanwhile, 36% (+2%) of those surveyed reckon the metal will trade in the range between 1,250 and 1,350 over the next three months.