- SWFX market sentiment is 73% bullish
- Pending orders in the 1000-pip range are set to buy in 65% of cases
- US Elections take place on Tuesday
Gold prices on Monday remained near the 1,230.00 level. Some technical levels signalled that the commodity price will surge in the near future.
Latest Fundamental Event
Previously, oil prices increased volatility during the release of the US Crude Oil Inventories on Wednesday at 14:30 GMT. The one-minute candle gained 27 pips, or 0.41% right after the data release. In the next minutes the rate was trading at the 66.30 level.
The Energy Information Administration released the US Crude Inventories data that came out better-than-expected of 3.2M, compare to forecasted 3.6M.
Fatih Birol, the Executive Director of the International Energy Agency said: "One is high oil prices, and in many countries, they're directly related to consumer prices. The second one is global economic growth momentum slowing down".
A quiet week for data releases
All of this week's events, which are worth mentioning, are described below
On Tuesday, the US Congressional Elections are taking place. They will impact all of the financial markets through the US Dollar.
On Wednesday, some traders will speculate on the publication of the weekly Crude Oil Inventories at 15:30 GMT. The event will be covered on a live webinar by Dukascopy Analytics.
In addition, on the same day the New Zealand's central bank will announce their Official Cash Rate at 20:00 GMT
On Thursday, the US Federal Reserve's Federal Open Markets Committee will publish their statement and announce the Federal Funds Rate at 19:00 GMT. The event will also be covered on a live webinar by Dukascopy Analytics.
On Friday, at 09:30 GMT the UK GDP and Manufacturing Production data sets will be published. Afterwards, at 13:30 GMT US Producers Price Index will be out. Both events will be covered by Dukascopy Analytics.
XAU/USD short term forecast
In regards to the near-term future, most likely, the gold will trade upwards to reach the 1,235.00 level. The 55-hour and the 200-hour simple moving averages will support the surge during the trading session on Monday.
It is expected that the yellow metal will reach the upper boundary of the ascending dominant pattern line at 1,240.50 in next few days.
Hourly Chart
On the daily chart note two technical levels. The 100-day simple moving average is located at the 1,220.40 level. Meanwhile, the 55-day SMA was located at 1,204.80 and was moving upwards to strengthen the technical levels near the 1,210.00 mark
Daily Chart
Long sentiment remains persistent
Traders remained long on gold on Monday. Namely, 73% of traders were long.
Meanwhile, trader set up pending orders are still mostly set up to buy more gold. 72% of all orders are set to buy.