- SWFX traders are 57% bearish
- 56% of pending orders in 800-pip range are set to BUY
- Pair tries to break above 1,339.00
- Upcoming Events: Quiet Monday
In result of the escaling North Korean crisis investors start to transfer their money into a more safer assets, such as gold. Nevertheless, this increased interest in gold is expected to have a short-term effect, as the further surge is obstructed by various technical barriers, while the southern side is empty until the 1,320.00 level.
The Labour Department revealed that the US marked an increase of 156K new jobs over the course of August, which was below expectations, but strong enough to keep the country's economy growing at a steady pace. Meanwhile, the unemployment rate rose to 4.4% from 4.3% in the same period. Despite moderation in the labour market, data showed nothing that could undermine the Fed's intention to start trimming its balance sheet.
Empty day
Due to celebarion of the Labour day in the United States, there will be no data releases from the American continent on Monday. Similarly empty economic calendar also has the European continent.
XAU/USD tries to leave channel up
A release of the US employment data last Friday predictably stopped the gold from losing value against the buck. In result of the surge that was also strengthened by growing fears over the North Korean crisis, the pair has practically broke through the upper boundary of a dominant ascending channel. From a fundamental side, today the Dollar is not expected to have any news that could motivate it to start to recover.
From a technical side, the further surge is obstructed by the updated weekly R1 at 1,339.42 and then by the monthly R1 at 1,348.36. In the meantime, the southern side has a barrier-free area up until the 55- and 100-hour SMAs that are located slightly above the weekly PP a 1,315.75. An average market sentiment point out on a rebound, as 62% of traders remain bearish on the given exchange rate.
Hourly Chart
Due to geopolitical tensions, the yellow metal managed to break from the junior descending channel to the top, simultaneously refuting an existence of little rising wedge. Nevertheless, the pair remains within boundaries of the long-term ascending channel. From a daily perspective, it has to continue to climb towards the upper edge of the pattern even if in the short run it will make rebound.Daily Chart
Markets sentiment remains bearish
Traders of Dukascopy remain bearish on the price of gold, as 57% of open positions are short. Accordingly, the same percentage of pending commands is to buy the commodity. Moreover, 42% of pending orders are set to sell the buck.
OANDA Gold traders remain neutral, as open positions are 51% bearish. In the meantime, SAXO bank traders are neutrally bearish, as 54% of open positions are short.