- Swiss market sentiment is 55% long
- 62% of pending orders in 1000-pip range are set to BUY Gold
- Weekly overview at 12:00 GMT
The bullion has made and failed at another attempt to surge above the 1,300.00 mark. Moreover, the bullion seemed to have lost most of short term support on Monday morning.
The Institute for Supply Management released Purchasing Managers Index data that came out better-than-expected of 58.7, compared to the 57.3 in the previous period.
"The upturn has stretched supply chains to the extent that May saw the greatest lengthening of delivery times in the near-ten year history of the survey," said Chris Williamson, Chief Business Economist at IHS Markit.
Join at 12:00 for a weekly start
The only notable data release of the day passed this morning, as we caught a 40 base point reaction on the GBP/USD at 08:30 GMT. However, there is still work to do on Monday.
Namely, at 12:00 GMT the start of the week webinar will begin. During the webinar Dukascopy Analysts will analyse the economic calendar of the week and reveal this week's webinar schedule.
However, if one is interested to read about when the next notable data release of the covered pair is set to occur, look at Tuesday. At 12:30 GMT the US CPI data sets will be published. The cover of the release is set to start at 12:20 GMT.
Gold with no changes
Gold is showing no changes in its positioning against the US Dollar for the sixth consecutive session. Similarly to other days, the 50.00% Fibonacci retracement and the monthly PP proved to be a strong resistance level, thus restricting any attempts to move above 1,302.00.
Meanwhile, it is apparent that the pair is gradually moving away from a four-week channel. This suggests that the 55– and 200-hour SMAs could guide the pair higher today. However, significant gains might not follow, as the 1.305.00 mark is restricted by the 200-period (4H) SMA.
The rate being stranded between these strong barriers are likely to result in yet another calm day for the yellow metal.
Hourly Chart
The XAU/USD commodity price maintained it senior descending channel since April 10. The pair has tested the upper boundary for the second time on May 31 and on June 5. However, on Friday the resistance line of the pattern was broken.
It occurred not due to a move north, but actually due to the pair fluctuating horizontally just below the 1,300 mark. The mentioned symbolic level was guarded by the resistance of the weekly PP and the 50.00% Fibonacci retracement level and the mentioned pattern's resistance line.
Moreover, one could expect that, as next week the 50.00% retracement level will become the only one standing, the commodity price might surge above the 1,300 mark.
Daily Chart
Swiss traders remain bullish
During today's morning hours of the London trading session 55% of open Swiss Foreign Exchange XAU/USD positions were still bullish. It has not changed since Wednesday.
Meanwhile, trader set up orders are bullish with 62% of them being set to buy the GOLD. Previously, we observed a large proportion of sell positions in the 1000-base point range. However, that was gone on Wednesday, indicating that the short term selling has already occurred.
All in all, for the third day Dukascopy analysts noticed that retail traders were waiting for the break out to the upside to occur. First of all dominant positions were largely bullish. Secondly, open orders were showing that additional traders would open long positions, if the price breaks higher.
OANDA traders remain largely bullish, as 68% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 68% of total positions being long.