- SWFX traders are 52% bearish
- 64% of pending commands are to buy the metal
- The bullion opened at 1,242.06
- Upcoming Events: US Core PCE Price Index; US Personal Spending; FOMC Member Dudley's Speech; US Chicago PMI; FOMC Member Kashkari's Speech; US Revised UoM Consumer Sentiment
The US economy expanded at a stronger than initially expected pace during the final quarter of 2016 amid higher consumer spending. The Commerce Department reported on Thursday the economy grew at a 2.1% annualised rate in the Q4 of 2016, compared to the previously estimated 1.9% pace. Nevertheless, for all of 2016, the economy expanded just 1.6%, the slowest pace of growth since 2011, following a 2.6% expansion in 2015. Moreover, the most recent economic indicators suggested that economic growth slowed further in the Q1 of 2017. According to the Atlanta Fed, the US economy expanded at a 1.0% rate in the Q1. However, economists claim that US employment data is more reliable than output data, as it paint a clearer picture of national income growth.
Thursday's data also showed consumer spending advanced 3.5% during the last quarter of 2016, up from the initially reporter 3.0% growth rate. Furthermore, domestic demand climbed 3.4% in the Q4 of 2016, the fastest pace of growth in two years, as imports posted a 9.0% jump, the biggest since the Q4 of 2014. Other data released on Thursday revealed that initial jobless claims dropped 3,000 to a seasonally adjusted 258,000 in the week ending March 25, remaining below the 300,000 level for 108 consecutive weeks.
Upcoming events: Loads of data and events
Friday is the day when the emptiness of this week regarding fundamental events is getting filled. US Data will be pouring in in the second half of the day. At 12:30 GMT the Core PCE Price Index and the US Personal Spending data will be released. Later, at 13:00 GMT FOMC member Dudley will give a speech. At 13:45 GMT the Chicago PMI will be available. Last but not least, at 14:00 GMT two events are scheduled, as FOMC member Kashkari will speak publicly and the Revised UoM Consumer Sentiment will be released.
Gold retreats to 1,240 level
Daily chart: On Friday the yellow metal began the day's trading session just above the 1,240 level. The reason for that is the strength of the US Dollar, which pushed the price lower in the second part of Thursday's trading session. However, the metal seems to have found support in the weekly PP, which is located at the 1,240.87 mark, which indicates that a short period of consolidation is set to occur. Although, the further short term path of the metal is most likely going to be dictated by the US Dollar fundamentals and political risk events around the world.Daily chart
Hourly chart: The hourly chart shows a clear rebound against the weekly PP, which is taking place during the first half of Friday's trading session. However, there is a resistance level approaching, as the 20-hour SMA was moving in from the upside near the 1,244 level. Although, if that resistance is broken, the metal is most likely going to continue the surge and move above the 1,245 mark, as the closest resistance afterwards will be the 200-hour SMA at the 1,248 level.
Hourly chart
Markets are bullish
OANDA Gold traders remain with a bullish outlook, as open positions are 57.08% long on Friday, compared to 56.16% previously. Meanwhile, traders of SAXO bank have increased the percentage of long positions, as 57.15% of open positions are long, compared to 52.31% on Thursday.