- SWFX traders are 55% bullish
- 73% of pending orders in 500-pip range are set to BUY the gold
- Gold price returns to 1,284.00
- Upcoming Events: US Housing Starts and Building Permits
A sudden demand for safe haven assets created an upside momentum that allowed the pair to break through combined resistance set up by various MAs and the monthly PP. In short run, the pair is likely to rebound from the 1,284.00 or 1,286.00 resistance levels. But, generally, it is expected to continue moving in northern direction.
The Labour Department revealed that the US consumer inflation eased to 0.1% from 0.5% in October, while its core figure appreciated to 0.2% in the same period. Relatively strong readings pointed to the end of disinflationary trend, which worried the Fed the most. The report also showed a little slowdown in retail sales growth pace, though stronger consumers spending, including higher real wages and job gains are expected to encourage retailing in the next months.
American housign
The only macroeconomic data release that might leave impact on the given exchange rate will happen at 13:30 GMT when the US Census Bureau will publish information on the number of housing starts and issued building permits.
XAU/USD goes up amid inflation concerns
Until beginning of new trading session, a combination of the 55-, 100- and 200-hour SMAs in conjunction with the monthly PP managed to constrain the pair from breaking to the top. However, once the news that the US House of Representatives passed its own version of the tax reform, the gold prices inched to the top. On the one hand, this advance confirmed existence of a minor ascending channel, which, in turn, implies further appreciation of the yellow metal. On the other hand, further road to the north is obstructed by the 1,283.90 and 1,286.13 resistance levels. In short term, the pair is likely to make a rebound. But, generally, the exchange rate is expected to continue heading towards the upper boundary of a medium-term ascending channel, which is supported by the 61% aggregate bullish market sentiment.
Hourly Chart
Yesterday's trading session also did not make the situation clearer, as the pair continues to trade at the intersection of a junior ascending channel and upper resistance line, which illustrates two-month long downtrend.
Daily Chart
Markets sentiment remain bullish
Traders of Dukascopy are bullish on valuation of the gold, as 55% of open positions are long. Accordingly, 55% of pending commands are to buy the commodity.
OANDA traders are bullish, as 71% (-1%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 58% (-2%) of open positions are long.