- SWFX traders are 56% bullish
- 56% of pending orders in 500-pip range are set to SELL the gold
- Gold test resistance line near 1,285.00
- Upcoming Events: US CPI, Retail Sales, Empire State Manufacturing Index and Crude Oil Inventories
The yellow metal is climbing upstairs against the after making a rebound from the bottom trend-line of a large ascending channel. From trade pattern perspective, the surge of the rate should continue. However, the end result will heavily depend of the released American numbers.
The Labour Department revealed that the US Producer Price Index increased 0.4% over the month of October, surprising expectations for a weaker gain of 0.1%. The surge was driven by a rise in the cost of services. In addition, data showed steady acceleration in underlying produced prices, which encouraged projections for a gradual inflation growth and kept the Fed on track to make the interest rate hike in December.
US inflation data release
At 12:30 GMT swing traders will have an opportunity to trade release of the US retail sales and inflation data reports. Afterwards, at 15:30 the will be an opportunity to turn to the Brent CFD amid release of the US Crude Oil Inventories.
XAU/USD returns to Friday's 1,284.00 level
In first of yesterday's trading session the exchange rate made left the junior ascending triangle pattern in southern direction amid strong pressure from the 55- and 200-hour SMAs. However, after making a rebound from the bottom boundary of a large ascending channel it resumed the surge and by the end of the day returned to the pre-fall 1,283.00 level. From technical point of view, appreciation of the gold is expected to continue not only because of the abovementioned rebound but also because of additional support provided by multiple moving averages as well as the monthly PP at 1,279.41. From fundamental side, an increasing political uncertainty in the UK is likely to support demand for safe haven assets as well. However, this assumption might be easily altered if the released American data will beat experts' expectations.
Hourly Chart
On daily chart the rate is continuing to climb from the bottom edge towards the upper edge of a junior ascending channel. However, this surge might be neutralized by a slope that illustrates the recent two-month long downtrend. The end result will greatly depend on release of the American inflation data.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are bullish on valuation of the gold, as 56% of open positions are long. Accordingly, 56% of pending commands are to buy the commodity.
OANDA traders are bullish, as 71% (+1%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 53% (-6%) of open positions are long.