- SWFX traders are 54% bullish
- 65% of pending orders in 500-pip range are set to SELL the gold
- Gold price remains near 1,268.00
- Upcoming Events: US Core Durable Goods Orders
The yellow metal has passed the support level, which forced it higher during the past trading sessions. However, that does not mean that the commodity price will decline. Instead it can be observed that a horizontal move is set to continue before a surge begins.
The US economy expanded at its strongest pace in two years in the Q3, fuelled by solid business spending.The Commerce Department stated that the country's gross domestic product rose at a 3.2% yearly rate in the Q3, missing expectations for a 3.3% growth. Moreover, the US Congress approved tax cuts are set to encourage economic growth, though the risk of overheating is likely to occur with fiscal stimulus coming simultaneously with reaching the level of full employment.
Last release before Christmas
One last release to watch before the financial markets begin their holiday weekend is the release of the US Core Durable Goods Orders. The release will occur at 13:30 GMT. Dukascopy research team is set to cover it live on our webinar platform. Remember to tune in as it begins at 13:20 GMT. There will be a notification on our trading platforms, which you will be able to click and join.
XAU/USD breaks support as expected
The previous forecast for the price of the yellow metal was correct. The bullion has passed the support line, which had kept the price surging for a long time. However, that does not mean that a decline of the price is about to occur.
Instead the metal's price passed the support in a horizontal move, as it was squeezed in between various levels of significance. Moreover, these levels of support at the 1,266 and 1,268 price tags are still providing support.
Due to these reasons combined it is expected that the support levels and then to the north moving simple moving averages will provide support, as a new junior ascending pattern is formed.
Hourly Chart
The Daily chart reveals that the 200-day SMA, as expected previously, was still providing resistance on Friday. In general it is another reason why the commodity might trade in a horizontal range for the time being. However, the main notable fact on the chart is the fact that a dominant resistance might be reached below the 1,275 mark. Moreover, it should be reached before 2018.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are bullish on valuation of the gold, as 54% of open positions are long. Accordingly, 60% of pending commands are to buy the commodity.
OANDA traders are bullish, as 65% (-3%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 63% (+3%) of open positions are long.