- SWFX traders are 55% bullish
- 61% of pending orders in 500-pip range are set to BUY the gold
- Gold price stays around 1,246.74
- Upcoming Events: Quiet Monday
During previous trading session the pair did not make any significant advances. Most probably situation will remain uncertain until the Fed will make a decision on the interest rate hike.
The US employment grew at a strong pace in November, confirming the country's healthy economic state, which analysts see not requiring the Donald Trumps' proposed fiscal stimulus, even with the moderate pay growth. The Labour Department showed that non-farm payrolls added 228K positions, while average hourly earnings increased 0.2% in the reported month, boosting the yearly rise in wages to 2.5%. Data also showed the jobless rate unaltered at a 17-year low of 4.1%.
Another empty Monday
There are no events planned for today that might notably affect valuation of the given exchange rate.
XAU/USD tries to break below monthly S2
Previous trading session the exchange rate mostly spent in a horizontal movement between the monthly S2 from the bottom and the upper boundary of a medium-term descending channel from the top. As on daily chart the pair continues to fluctuate in a junior channel down, a little recovery of the yellow metal is expected to happen. On the other hand, on hourly chart the upward movement is likely to be neutralized by the falling 55- and 100-hour SMAs as well as the weekly PP and the monthly S1 located around them. Hence, in nearest perspective the rate most probably will continue moving in southern direction. Such scenario is supported by positive expectations of the upcoming adoption of the tax reform as well as interest rate hike.
Hourly Chart
After falling three days in a raw the rate found support at the monthly S2. In short run, the bullion is likely to try climbing back to the 1,263.00 mark. In larger perspective, the pair is expected to continue moving downwards within boundaries of a senior descending channel. However, whether this scenario materializes will heavily depend on the upcoming Fed meeting and decision on the interest rate hike.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are neutral on valuation of the gold, as 55% of open positions are long. Accordingly, 55% of pending commands are to buy the commodity.
OANDA traders are bullish, as 74% (+3%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 64% (-2%) of open positions are long.