- SWFX traders are 51% bearish
- 67% of pending commands are to buy the metal
- The bullion opened at 1,261.55
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Upcoming Events: US New Home Sales
The bullion remained almost flat during the first half of Tuesday's trading. However, various signs indicate that a surge is upcoming. First of all due to the rebound against the support cluster below the 1,250 mark, the bullion has formed an ascending channel pattern for the short term. Secondly, the bullion has no significant resistance up to a cluster of significance, which is located at the 1,270 mark. Last but not least. The surge of May began as a rebound against a long term support, which means that the medium term down trending pattern is set to be broken.
The number of Americans filing for unemployment benefits dropped unexpectedly last month, official figures revealed on Thursday. The US Department of Labour reported that initial jobless claims fell to 232K in the week ending May 12, following the preceding week's 236K and posting the third consecutive decline. In the meantime, analysts held expectations for an increase to 240K. Claims remained below the 300K level for 115 straight weeks, the longest stretch since 1973.
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Upcoming events: US New Home Sales
During the next 24 hours there is only one minor data release scheduled to occur. The US New Home Sales data is set to be released at 14:00 GMT. However, a large impact on the US Dollar is unlikely.
Read More: Fundamental Analysis
Gold near 1,260 level
During the early hours of Tuesday's trading session the yellow metal's price fluctuated near the 1,260 mark without a clear direction. However, on a larger scale it can be understood that the bullion is still in the surge, which began after reaching the support cluster near the 1,250 level. Due to that fact it can be assumed that the commodity price eventually will reach the nearest technical resistance, which is near the 1,270 mark, as at that level there is a resistance cluster made up of three various levels of significance.
Daily chart
It can be observed on the hourly chart that, as a result of the rebound of the bullion against the cluster near the 1,250 mark, a short term ascending channel has formed. The channel is set to guide the pair to the before mentioned resistance cluster just below the 1,270 mark.Hourly chart
Read More: Technical Analysis
SWFX traders stick to being neutral
Traders sentiment remains firm, as 51% of open positions are short, and 67% of trader set up orders are long.
OANDA Gold traders are less bullish, as open positions are 64.63% long on Tuesday, compared to 69.03% previously. Meanwhile, traders of SAXO bank have done the same, as 53.69% of open positions are long, compared to 55.27% positions on Monday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being near 1,350 in late August
© Dukascopy Bank SATraders who were asked regarding their longer-term views on gold between April 23 and May 23 expect, on average, to see the metal just below 1,350 in late August. Generally, 50% of participants believe the price will be above 1,350 in ninety days. Alongside, 37% (+3%) of those surveyed reckon the metal will trade in the range between 1,200 and 1,350 over the next three months.