- 51% of all SWFX open positions are bullish, as the sentiment is slightly bullish
- Prices fluctuating below 1,320 level on Wednesday morning
- Gold has resumed fluctuating around a certain level
- Economic events to watch over the next 24 hours: US Durable Goods Orders (June); US Pending Home Sales (June); DOE Crude-Oil Inventories (July 22); FOMC Rate
As markets expected, the European Central Bank (ECB) kept its key interest rates on hold on Thursday, but signaled that it is prepared to add more monetary stimulus later in the year. The main refinancing rate was left at 0%, whereas the ECB interest rates on the deposit facility and the marginal lending facility remained unchanged at -0.40% and 0.25%, respectively. The central bank slashed its deposit rate deeper into negative territory in March. In a news conference, Mr. Draghi said the Brexit vote had added to "headwinds" for the Euro zone economy that include broader geopolitical uncertainty. Mario Draghi, President of the European Central Bank, also confirmed that the monthly asset purchases of 80 billion euros may run beyond the current deadline of March 2017, if necessary. Furthermore, the central bank's President highlighted that the governing council may provide more stimulus at its next meeting in September, as new post-Brexit forecasts for economic growth and inflation will be available by that time. Meanwhile, analysts polled by Reuters slashed their growth forecast for the Euro zone to 1.3% from 1.6%, but left inflation projections unchanged at 1.3%.
New US single-family home sales rose more than expected in June, fresh figures from the US Census Bureau showed on Tuesday. Sales of newly built homes grew 3.5% to a seasonally adjusted rate of 592,000 units during the reported month, posting the strongest reading since February 2008 and surpassing market analysts' expectations for an increase to 560,000 units. In the meantime, the previous month's sales pace was revised up to 572,000 from the originally reported 551,000 units. The housing market is being underpinned by the tightening labor market, which is starting to lift wages, as well as very low mortgage rates. Other data released on Tuesday showed that the mood of shoppers across the United States worsened less than expected in the seventh month of the year, as the Conference Board Consumer Confidence Index dropped to 97.3 points in July, whereas economic desks predicted a steeper deceleration to 95.6 in the reported month. Meanwhile, last month's figure was revised down to 97.4 from the prior reading of 98.0 points, which was the highest since January. Furthermore, it appeared that Britain's recent decision to leave the European Union did not have any significant impact on American consumers
Upcoming fundamentals: US goods orders, crude oil inventories and FOMC rate
Most eyes are set on FOMC Rate announcement at 18:00 GMT on Wednesday, as market participants and experts forecast that the rate will remain unchanged at 0.5%. However, there are other data releases upcoming before the rate announcement. US Durable Goods Orders for June will be released at 12:30 GMT, and, four hours before the FOMC Rate, US Pending Home Sales monthly change for June will be out at 14:00 GMT. Half an hour after the pending home sales, DOE Crude-Oil Inventories for the week up to July 22 will be published at 14:30 GMT.
Gold fluctuating around 1,320 on Wednesday
Daily chart: The yellow metal has been stagnant for the past sessions, as the bullion has been bouncing around the 1,320 level. On Monday it seemed, that a new trend might finally start, as the metal's price fell, and that changed on Tuesday, as the price surged back up close to 1,320 level. On Wednesday morning, the commodity is trading slightly volatile at the same levels, as during Tuesday's trading session. Although, the situation might change by the end of the week, as the 20-day SMA is closing in on the rate from the upside at 1,323.75.Daily chart
Hourly chart: The hourly chart shows that the yellow metal is fluctuating around the same level without being affected by support or resistance levels, as the commodity is in a sort of free float from 1,315 to 1,323. However, in the mix in between the 20, 55 and 100-hour SMAs have reached the same fluctuation levels of gold, and the simple moving averages will most likely start affecting the prices soon.
Hourly chart
SWFX sentiment unchanged on Wednesday
Meanwhile, OANDA Bank clients are largely bullish with respect to the bullion, precisely in 68.05%. In the meantime, SAXO bank clients are less bullish on the yellow metal, as 64.95% of positions are long.