- SWFX market sentiment is 72% bullish
- 51% of pending orders in 1000-pip range are set to SELL Gold
- No notable events are scheduled until Wednesday
On Monday, the gold price pierced long term support and declined below the 1,200 level. Due to that reason from a technical perspective the metal could decline as low as 1,180.00.
The Energy Information Administration released the US Crude Levels data that came out lower-than-expected of negative 4.3M, compare to forecasted negative 2.2M. The released numbers mean that there is a lot of unused crude oil leftovers across the United States, which might slow down the US economy.
The volatility increased by a half of what was expected, which was a disappointment for the data release. The reason behind such numbers is US sanctions against the consumers of Iranian Oil.
Gold prices will be influenced by macroeconomics on Wednesday
During the first half of the week there will be no notable data releases occurring in the United States. On Wednesday, the US PPI data release will occur at 12:30 GMT. The event will be covered by Dukascopy Analytics on the bank's webinar platform.
Meanwhile, note that macroeconomic data release traders will have something to do until Wednesday. On Tuesday, at 08:30 GMT the United Kingdom's Average Earnings Index will be published.
In addition, commodity traders will be watching the Wednesday's release of the weekly US Crude Oil inventories that have been known to cause 50 pip bounces. The data will be published at 14:30 GMT.
XAU/USD short term forecast
In regards to the near future, the yellow metal will surge upwards to the bottom boundary of the ascending medium channel, but will bounce off it due to a strong resistance of the 100-hour simple moving average and the medium channel line.
Be careful, the monthly PP at the 1.195.60 mark could also turn into a strong support level, which may push the yellow metal upwards to pass the medium channel line and the simple moving averages.
Hourly Chart
The pattern, which was expected to guide the commodity price as high as the 1,230.00 level, was broken on Monday. Namely, the rate passed the pattern's support line.
Due to that reason and the lack of any support as low as the 1,176.00 level, a decline is expected to occur in the upcoming trading sessions.
Daily Chart
Markets remain largely bullish
74% of SWFX market traders are going long on the pair. The sentiment has remained almost unchanged for more than a week.
Although, short term traders no longer provide buying pressure, as the domination of pending buy orders was gone on Monday. Instead of 58% of orders being set to buy, 52% of all orders were set to sell during the first half of the day's trading session.
Meanwhile, at other marketplaces long term sentiment also remains persistent. At OANDA 75% of traders are long. Likewise, SAXO Bank traders were 70% long on the yellow metal's price.