- SWFX traders are 58% bullish
- 53% of pending orders in 500-pip range are set to BUY the gold
- Gold price surges to 1,268.00
- Upcoming Events: US Final GDP, Philly Fed Manufacturing Index and Unemployment Claims
The bullion continued to climb upwards against the buck in the little rising wedge. By the end of the day the pair most probably will make a breakout from the pattern in southern direction due to strong resistance set up around the 1,269.00 level.
The US home sales rose more than anticipated in November to reach the highest level in 11 years, indicating that the property market growth started to regain momentum after procrastination for the most of the year. The National Association of Realtors stated that the country's exciting home sales increased 5.6% to a seasonally adjusted yearly rate of 5.81M units due to lingering recovery of hurricanes-hurt areas. However, the market activity remained constrained by a shortage of available properties, which kept prices elevated.
US GDP release
At 13:30 GMT traders could observe a triple release of the American macro data. However, only one of them is expected to have at least some observable effect on the markets, i.e. Final GDP.
XAU/USD trades around 1,268.00
The whole previous trading session the exchange rate spent exactly as expected. First, the yellow metal continued to advance against the buck in a minor rising wedge pattern that has formed at the intersection of two junior ascending channels. Second, it surged to the 38.2% Fibonacci retracement level located at 1,268.00 and then pulled back to the weekly R1. Today the rate is expected resume the upward movement using the support provided by 55-hour SMA that lies along the lower trend line of the pattern. However, by the end of the day the pattern most probably will be dissolved. In this respect, a resistance zone located around the 1,269.00 level as well as the upcoming release of the US Final GDP data suggests that the breakout will happen to southern direction.
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 68% (-2%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 60% (-2%) of open positions are long.