- SWFX traders are 51% bullish
- 71% of pending orders in 500-pip range are set to BUY the gold
- Price of gold falls to 1,275.00
- Upcoming Events: US Crude Oil Inventories, Trump visits China
The yellow metal lost its value, as concerns over situation in the Middle East have eased. In the meantime, the US President Donald Trump's arrival in Beijing is likely to lead to further appreciation of the Dollar, as two leaders are expected to announce conclusion of various trade deals.
The JOLTS report showed that demand for workers in the US remained solid, with 6.1M job openings registered in September. The job opening rate, as well as pace of hiring were unchanged at 4% and 3.6%, respectively. Despite the recent hurricanes' fallout, levels were steady, indicating the resilient labour market. However, nearly 1.7M people were laid off or fired in September, compared with 1.5M a year ago.
Trump arrives in China
In essence, there are no notable data releases planned for today. For this reason, it would be better to follow Trump's meeting with President Xi, where two leaders are expected to announce a number of mutually beneficial trade deals that would help the United States to narrow a gap in its trade balance.
XAU/USD fluctuates between 1,275 and 1,280
As there were no breaking news yesterday, recovery of the buck was expectedly neutralized by combined support level set up by the 55-, 100- and 200-hour SMAs together with the weekly PP at 1,273.35. In the meantime, lowering interest for safe haven assets as well as existence of the monthly PP at 1,279.41 did not allow the pair to make a fully-fledged rebound either. For this reason, the rate is expected to continue moving in this limbo until traders receive a proper signal that will allow making a decisive breakout. Most probably such signal will come from China, where Donald Trump is expected to announce conclusion of different deals that would allow narrowing the gap in the US trade balance. In that case, the buck has a chance to reach the bottom edge of the channel in the next one-two days.
Hourly Chart
In line with expectations, the exchange rate continued and is likely to continue to move horizontally near the monthly PP, the 61.8% Fibonacci retracement level and the 100-day SMA until it makes a decisive breakout from the ascending channel pattern, which is clearly seen on hourly chart. As the present week lacks fundamental data releases, the above correction might last until Friday.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are neutrally bullish on valuation of the gold, as 51% of open positions are long. Accordingly, 51% of pending commands are to buy the commodity.
OANDA traders are bullish, as 72% (+2%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 56% (-1%) of open positions are long.