- SWFX market sentiment is 73% bullish
- 63% of pending orders in 1000-pip range are set to BUY Gold
- US ISM data release might cause fluctuations
The yellow metal will trade sideways around the 1,195.00 mark. There it will be bound by simple moving averages from the upside, a pivot point in the middle and lower trend lines of channel patterns below the commodity price.
The Energy Information Administration released the US Crude Levels data that came out lower-than-expected of negative 2.6M, compare to forecasted negative 0.7M. This data release shows the change in the number of barrels of crude oil held in inventory by commercial firms during the past week.
Dukascopy Bank SA comments:"The data release was unusual because the reaction on the oil price up immediately was followed by the price drop in the following minutes. The price drop most likely was caused by market participants, who took advantage of the increased liquidity and sold their oil assets."
Minor data on Tuesday
The only data release, which might slightly influence gold prices, will be the US ISM Manufacturing PMI at 14:00 GMT. Although, in the past the impact of the announcement on the financial markets was almost insignificant.
XAU/USD short term forecast
The gold price depreciated 0.19% since Monday's trading session. The XAU/USD passed through the monthly pivot point at 1,196.00 at 07:00 GMT this morning.
It is expected that the yellow metal will be traded horizontally among the monthly PP at the 1,196.00 mark and the lower trend lines of the descending and ascending patterns during the next couple of trading days.
Eventually, the price should get squeezed between the lower trend line of the larger pattern and the pivot point and break out. Watch for that moment.
Hourly Chart
On the daily chart it can be seen that gold is surging in the borders of a large descending channel pattern. The surge occurred due to the metal bouncing off the lower trend line of the channel down. The commodity price is set now to head for the upper trend line of the pattern.
The commodity price is heading for the 1,230.00 mark, which it should reach by the middle of September. On its way there, it is set to face the 55-day simple moving average, which is heading lower near the 1,225.00 level and the resistance of a 50.00% Fibonacci retracement level near 1,212.00.
Daily Chart
Markets remain largely bullish
73% of SWFX market traders are going long on the pair. The sentiment remained almost unchanged for a whole week.
Meanwhile, pending buy orders indicate that there might be additional buying going on in the future, as 57% of all waiting orders are set to buy the metal.
Meanwhile, at other marketplaces long term sentiment also remains persistent. At OANDA 77% of traders are long. Likewise, SAXO Bank traders were 69% long on the yellow metal's price.