- SWFX market sentiment is 75% bullish
- 56% of pending orders in 1000-pip range are set to SELL Gold
- No data impacting gold
The medium term pattern of the daily chart has managed to hold its ground. It can be expected that the bullion will decline down to the 1,180.00 mark before it makes another attempt to surge.
The Energy Information Administration released Crude Oil Inventories data that came lower-than-expected at -5.8 Million to forecast –1.6 Million. This data set is primary gauge of supply and demand imbalances in the market. The data may affect changes in production levels and price volatility.
Nothing impacting the bullion
There are no notable macroeconomic data publications scheduled for Thursday's trading session. Although, note that on Friday there are two very important events scheduled.
Most notable of the two is the scheduled speech of the head of the Federal Reserve Jerome Powell at the Jackson Hole Symposium at 14:00 GMT.
Meanwhile, macroeconomic data release traders will pay most attention at 12:30 GMT on Friday. At that time the US Durable Goods Orders data sets will be published. The event will be covered by Dukascopy Analytics on the bank's live webinar platform. The cover will start at 12:20 GMT.
XAU/USD shows strong bearish signals
The yellow metal has depreciated 1.27% against the US Dollar since mid-Wednesday. The pair tested the bottom boundary of the trend line at 1,186.53 early on Thursday, which created a new down-trend.
During Thursday morning hours, Gold was at 1,190.03, testing the 200-hour SMA as additional support level to recover itself. However, the yellow metal passed the 200– hour simple moving average at 7:00 GMT on Thursday, which shows strong bearish signals for traders.
Insignificant data releases are scheduled for today's trading session which may keep the yellow metal between the 55-hour and 200-hour SMAs.
Hourly Chart
The daily chart has been reviewed. Two descending patterns have been discovered. One of the patterns is junior to the other one and their scales differ drastically. The junior pattern represented the metal's decline in the borders of the larger trend.
In general, the bullion is set to test the resistance levels just above the 1,200.00 mark, which can either hold its ground and force the rate back down or give up. If the resistance levels are passed, the 1,235.00 level will be targeted.
Daily Chart
Markets remain largely bullish
75% of SWFX market traders are going long on the pair.
Meanwhile, pending buy orders have increased in number, as 57% of all trader set up orders are set to buy. This indicates, that the retail traders are preparing to buy even more gold, if resistance levels are passed.
OANDA traders have decreased their bullish sentiment from 78% of all positions being bullish to 73%. Meanwhile, SAXO Bank traders were 71% long on the yellow metal's price. Previously, they were 68% long.