- SWFX traders are 58% bullish
- 65% of pending orders in 500-pip range are set to BUY the gold
- Gold price moves towards 1,266.00
- Upcoming Events: US Existing Home Sales and Crude Oil Inventories
The price of yellow metal continued to grow yesterday despite the progress made on final adoption of tax reform. In first half of this trading session the price is expected to test the 1,266.05 mark. However, the further direction of the rate should depend on decision that will be made by the Senate.
The US single-family housing starts and building permits increased to the ten-year highs in November, providing a hopeful sign for the real estate market that was hindered by supply constraints. The Commerce Department stated that in overall building permits were at a 1.298M unit rate in November, being put slightly down by a weaker permits for multi-family houses' construction. However, an increase in groundbreaking singe-family homes could contribute to GDP in the Q4.
Quiet Wednesday
The only more or less notable event will happen at 15:00 GMT with release of information on the US Existing Home Sales. Nevertheless, it is not expected to cause any notable volatility in the markets.
XAU/USD heads towards weekly R1
In result of the previous trading session, the pair made a breakout from rising wedge pattern that formed at the intersection of two junior ascending channels. Surprisingly, but traders did not show much interest to release of the American housing data or successful vote in the House. Accordingly, the exchange rate continues to slowly climb towards the weekly R1 located at the 1,266.05 level. A major recovery of the buck even in case of adoption of tax bill by the Senate looks doubtful, as the southern side is reliably covered by the monthly S1, the 55- and 100-hour SMAs plus the lower boundary of one of the above channels. On the other hand, a serious appreciation of the bullion is also uncertain due to resistance posed the 38.2% Fibonacci retracement level at 1,268.00.
Hourly Chart
On daily chart the exchange rate is trading in a three-month long descending channel that started to transform into the falling wedge formation in result of rebound from the 50% Fibonacci retracement level. Accordingly, in nearest future the rate is expected to keep moving upwards tending to reach combined resistance formed by the 200-day SMA and the 38.2% retracement level near 1,268.00.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are bullish on valuation of the gold, as 58% of open positions are long. Accordingly, 58% of pending commands are to buy the commodity.
OANDA traders are bullish, as 70% (-1%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 62% (+2%) of open positions are long.