- SWFX market sentiment is 71% bullish
- Pending orders in the 1000-pip range are neutral
- No data releases will impact gold prices this week
Gold prices remain near 1,200 for the fourth consecutive session. Meanwhile, the metal was clearly signalling that it will surge, as it traded above the support of three simple moving averages.
Oil prices have decreased after the US Crude Oil Inventories data release last Wednesday at 14:30 GMT. The one-minute candle lost 22 pips or 0.31% after which, the rate surged upwards to trade at the 70.80 level.
The Energy Information Administration released the US Crude Levels data that came out lower-than-expected of negative 5.3M, compare to forecasted negative 1.3M.
The Dukascopy analysts were not expecting the price drop of negative 22 pips or 0.31% at the release time. The crew predicted the price surge at the release time, but the expectations were not fulfilled this time.
The released number is putting stockpiles 3% below their five-year average for the US Crude Oil Inventory according to the Energy Information Administration.
The week will end with Canadian data
The week's macroeconomic releases will end on Friday. On that day the Canadian CPI and Retail Sales data sets will influence the strength of the Canadian Dollar at 12:30 GMT.
XAU/USD short term forecast
The gold price appreciated 0.33% since Wednesday 's trading session. On Thursday, the yellow metal was trading sideways near the 1,202.00 level.
The simple moving averages kept supporting the yellow metal since Wednesday's trading session. The gold is still waiting for the buy signal for traders to change the yellow metal low volatility.
In regards to the near-term future, it is expected that the buy signal will push the yellow metal to surge upwards to the 61.80 % Fibonacci retracement level at 1,2158.00 mark.
Hourly Chart
The recent surge has provided the opportunity to use the low levels for the drawing of a new ascending channel pattern. Although, note that fundamental events might once more push the yellow metal prices in a way that smashes technical chart patterns.
In addition, note that there are larger scale resistance levels on the chart. For example, the surge recently was stopped by the 1,212.70 level, where a 50.00% Fibonacci retracement level is located at. Moreover, the 55-day simple moving average was approaching the commodity price near the 1,211.93 level.
Daily Chart
Markets remain long on gold
Swiss traders remained long on gold, as 71% of trader open positions were long on Thursday.
Meanwhile, most trader set up pending orders are set to buy the metal by closing short positions or opening additional long positions. Namely, 62% of all trader set up orders are set to buy the metal under various conditions. This indicates that the retail sector might push the price higher, in the near future.