- SWFX traders are 50% bullish (-3%)
- 50% of pending orders in 500-pip range are set to BUY the gold
- Gold prices continue the surge
- No fundamentals in this session
The yellow metal has continued to surge. The price on New Year's Eve surged above the 1,300 mark. Moreover, on Tuesday the commodity price had already reached above the 1,310 mark. However, the pair seems to have encountered a short term resistance line.
Market News International stated that its PMI of manufacturing sector in Chicago jumped to 67.6 in December, after 63.9 reading in the previous month. The survey also showed that businesses were shoring the stock level to support lead times and prepare for next year's product launches. However, the employment rate decreased, but remained higher than in post-crisis times.
Lack of fundamentals
On the first day of the year's trading there are no notable data releases set to occur. However, the rest of the week will have interesting data coming in. Namely, the various US PMI and employment data sets are likely to move the financial instruments that are traded against the US Dollar.
XAU/USD above 1,310 mark
Due to the increase of the US Dollar's weakness the yellow metal's price has continued to climb. Moreover, the continuation of the surge is set to continue. Just before the year changed and 2018 started, the currency pair reached already above the 1,300 mark.
Meanwhile, during the first trading day of the year the commodity price had reached above 1,310 level.
However, after doing a review of the junior channel up pattern's borders it was discovered that the pair has been slowed down by an upper trend line of the junior pattern. It is possible that the resistance could force the metal's price slightly lower.
Although, that is highly unlikely.
Hourly Chart
The daily chart reveals that the bullion was in its eight consecutive trading session of gains against the US Dollar. Meanwhile, another fact has been discovered. The commodity price has been trading in a massive channel up pattern. The latest surge has been a rebound against the lower trend line of the pattern.
Daily Chart
Markets sentiment is neutral
SWFX market sentiment is neutral on Gold, as 50% of open positions are long (-3%). Meanwhile, 50% of pending commands are to buy the commodity (-20%).
OANDA traders are bullish, as 53% of open positions are long, compared to 54% on the previous trading day. In the meantime, SAXO bank traders are 51% bullish, as their open positions stand near equilibrium.