- 57% of all SWFX open positions are long
- 66% of pending commands were to buy the metal
- The bullion opened at 1,150.04 on Tuesday
- Upcoming Events: ISM Manufacturing PMI
Americans became more optimistic about the economy in December since the postelection bump in confidence continues. As data suggest the US consumer confidence reached its highest in more than 15 years during the previous week as Americans expect more strength ahead in business conditions, stock prices and the job market following the election of Donald Trump as president in November. According to the Conference Board the Consumer Confidence Index advanced to 113.7 in December from an upwardly revised 109.4 in November. Meanwhile, the data topped estimates in a Reuters poll for a reading of 109.0. Another reason for the gain in confidence is surging optimism among older Americans. Economists follow confidence indicators because upbeat consumers are more likely to increase personal spending, which makes up most of the US economy.
The US job market finished the year on solid footing as an important indicator of layoffs continued to be near historically low levels, showing a resilient labor market. According to the a Labor Department, national jobless claims declined by 10,000, to 265,000, during the previous week from a six-month high in the prior period. The data tend to fluctuate around the year-end holidays, while the trend reveals managers' reluctance to fire workers as demand remains steady. Filings have been below 300,000 for 95 straight weeks — the longest streak since 1970 and a level economists say is typical for a healthy labor market. Millions of Americans have found work in the past five years, pushing the unemployment rate below 5% and eliciting complaints among businesses about how hard it is to find skilled workers to fill open jobs.
Upcoming fundamental releases: ISM Manufacturing PMI
The XAU/USD market is unlikely to experience severe fluctuations due to fundamental factors during the morning session on Tuesday. Some more prominent volatility could spill into the market at 3:00 GMT when the ISM manufacturing PMI comes out, in case the data comes out other than expected.
Bullion markets wake slowly
Daily chart: The Bullion opened green on Tuesday and showed a green candle in the making. The pair could now be entering a flat motion towards the junior bottom boundary at 1,142.87 after the 1,148.87 weekly Pivot Point is battled successfully. XAU/USD is currently squeezed in between the weekly and monthly Pivot Points with the 20-day SMA also in the cluster, meaning that the metal could show little volatility over the trading session. With supply and demand being roughly in balance, the Bullion might as well remain intact for now.Daily chart
Hourly chart: The hourly chart shows the metal attempting to close below a cluster of support levels, such as the 55 and 20-hour SMAs along with the monthly Pivot Point, opening the way for tests of 1,150.44, the 100-hour SMA. A single resistance level lies at 1,159.77 and is unlikely to be attacked today, however, we will have to wait for markets to wake for more decent signals. An ultimate target could lie below at 1,143.88 and represent the aforementioned bottom boundary.
Hourly chart
Traders still optimistic
OANDA Gold traders remain largely optimistic regarding the Bullion, as open positions were 85.39% long. Meanwhile, traders of SAXO bank increased their bullish stance, as today showed 64.83% of traders betting the metal will surge, compared to 62.19% during the previous session.