- SWFX traders are 52% bearish
- 57.60% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,277.42
- Upcoming Events: US PPI; US Unemployment Claims
The yellow metal jumped on Wednesday, as expected. However, something has changed during the last 24 hours. The hourly chart of the daily review still indicates at a surge. However, the Daily chart and the longer term perspective is different.
The Labour Department showed that the nonfarm productivity rose at a 0.9% annual growth pace in the June quarter, above expectations for a 0.7% rise. Experts suggested that an upward move was supported by higher volume of hours worked, but the overall trend was seen weak, raising doubts that the robust US economic growth nearing 3% year-over-year would be achieved even despite Trump's tax cuts, regulatory rollbacks and higher infrastructure spending.
United States release in focus
On Thursday it is simple. We have cut down the most important and will cover it on the live webinar platform at 12:00 GMT. The US PPI and Unemployment Claims data sets are to be released and covered. Moreover, a notification will pop up on your JForex platform just before the release of the data, which will be the topic on all of the Swing Traders on Thursday.
XAU/USD set for more gains
It can be observed on the hourly chart for the yellow metal that the bullion broke out of the descending channel pattern to the upside. Due to that reason it can be assumed that more gains are to be scored, as on Thursday morning the commodity price fluctuated just below the 1,280 mark. The 1,280 mark seemed to pose some sort of rather weak but still notable resistance. This recent breakout, which was initially not expected, occurred due to fundamental reasons. The recent quarrels between the United States and North Korea have created a sort of run to safety. Moreover, it reversed the recent fundamental strengthening of the US Dollar after the JOLTS Jobs Openings release.
Hourly Chart
On the daily chart the commodity price has reached a long term descending channel pattern's upper trend line, which is the actual resistance level at the 1,280 mark. Actually, calling the dominant pattern a long term pattern is a strong understatement. The channel has guided the pair since the start of 2016. Due to that reason it is imperative for market participants to watch closely, whether the active ascending channels break through the resistance.Daily Chart
Markets inclined to the bullish side
Traders of Dukascopy remain in the neutral zone, as 52% of open positions are short. Meanwhile, in regards to the pending commands, bulls are dominating with 58% of orders set to buy the metal.
OANDA Gold traders remain bullish, as open positions are 58% long. In the meantime, SAXO bank sentiment is 55% bullish.