- SWFX market sentiment is 72% bullish
- 53% of pending orders in 1000-pip range are set to SELL Gold
- No data releases until Wednesday
In the aftermath of central banking comments made by Jerome Powell on Friday, gold prices remained clearly above the 1,205.00 level on Monday.
The Census Bureau released US Core Durable Goods Orders data that came lower-than-expected of 0.2%,compared with the forecasted 0.5% . The data release showed traders that the change in the total value of new purchase orders placed with manufacturers for durable goods was lower than expected this time.
Jerome Powell, the chairman of the Federal Reserve said: " I see the current path of gradually raising interest rates as the [Federal Open Market Committee's] approach to taking seriously both of these risks, while inflation has recently moved up near 2%, we have seen no clear sign of acceleration above 2%, and there does not seem to be an elevated risk of overheating."
First notable data of the week will be on Wednesday
It is the last week of the month, due to that reason there are almost no notable events scheduled for the most part of the week, which might cause large fluctuations in the currency markets.
On Wednesday, the US Preliminary GDP will be released at 12:30 GMT. The data, in theory, should provide a large reaction in the financial markets. Live event cover on the Dukascopy Webinar platform by Dukascopy Analytics will start at 12:20 GMT.
On the same day the weekly US Crude Oil Inventories data release will be published at 14:30 GMT, which has given bounces of at least 0.5 USD or 50 base points throughout the summer. Although, note that two times the data release disappointed macroeconomic release traders.
The week's last notable event will be the publication of the monthly Canadian GDP at 12:30 on Thursday. This data set is set to give the largest reaction from all of the releases, as CAD GDP has been constantly giving a reaction of at least 40 base points each month on the USD/CAD.
XAU/USD bounces off medium resistance
Gold weakened against the US Dollars on Monday morning, but the yellow metal has appreciated 2.02% against the US Dollar during the Friday's trading session showing strong uptrend movements during the day. During Monday's morning hours, Gold was at 1,204.69, just above the monthly S1 (1,202.25) as support level to recover itself.
The 55-hour and 100-hour SMAs have crossed at midnight hours and keep moving together. Such movements may flash strong bullish signals for traders. The nearest support level is the monthly S1 at 1,202.25, while the nearest resistance level is the monthly PP at 1,234.16.
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
72% of SWFX market traders are going long on the pair. The sentiment has not changed since Friday.
Meanwhile, the proportion of buy orders of total set up orders has increased from 60% on Friday to 63% on Monday.
Meanwhile, at other marketplaces long term sentiment also remains persistent. At OANDA 74% of traders are long. Likewise, SAXO Bank traders were 69% long on the yellow metal's price.