- SWFX traders are 51% bearish
- 65% of pending commands are to buy the metal
- The bullion opened at 1,248.84
- Upcoming Events: US Unemployment Claims; Fed Chairwoman's Yellen's Speech; US New Homes Sales; FOMC Member's Kashkari's Speech; FOMC Member's Kaplan's Speech
Residential home sales plunged in February despite the promising start of the year. Contrary to experts' forecasts, total existing home sales slipped 3.7% over the month of February. Nevertheless, last month's results were still 5.4% higher than a year ago. According to the National Association of Realtors, the drop was mainly attributable to shortage of homes in the affordable price range. In February, the median house price soared 7.7%, which tags the 60th consecutive monthly increase. Realtors cannot satisfy the demand because more prosperous buyers quickly acquire newly listed houses and, thus, leave minimal choices to the remaining customers. Consequently, housing inventories went up 4.2% but still remained lower than a year ago.
The other data revealed that on the week ended March 17, US crude oil inventories surged 5.0M barrels, which significantly exceeds experts' forecasts. Moreover, the week highlighted the tenth increase in the last eleven weeks and presented a new record of 533.1M barrels.
Upcoming events: US data and speeches
This Thursday is set to be a busy day in the USA, in regards to events, which are set to influence the US Dollar and subsequently all of the financial markets. First of all at 12:30 GMT the weekly Unemployment Claims will be released. However, the release will soon be offset by what Janet Yellen will say in her speech at 12:45 GMT. Later in the afternoon, at 14:00 GMT the US New Home Sales data will be out. Although, it is highly unlikely that this data release will impact the markets. At 16:30 GMT FOMC Member Kashkari will give a speech. Moreover, at 23:00 GMT another FOMC speaker will speak as Kaplan is set to talk with the public at that time.
Gold remains below 1,250 mark
Daily chart: During the early hours of Thursday's trading session the yellow metal was in a retreats, which was initiated by the end of Wednesday's trading. Although initially it might seem that the 50.00% Fibonacci retracement level at 1,248.96 has reversed the direction of the bullion that is not true. The commodity price was pushed lower by a long term downwards aimed trend line, which can be drawn by connecting the August and September heights with the high level of February. It is, however, a high possibility that the metal will attempt to break this resistance and surge to the 1,256 level, where the next resistance level is located at.Daily chart
Hourly chart: The hourly chart reveals that the push higher might occur due to additional support approaching. The 55-hour SMA was located at the 1,242.91 level on Thursday morning, and it was clearly heading higher. However, the Bollinger bands indicated that the past 20 hour fluctuations have been rather flat.
Hourly chart
Bearish sentiment increases
OANDA Gold traders have decreased their bullish outlook, as open positions are 61.29% long on Thursday, compared to 64.23% previously. However, traders of SAXO bank have also increased their bullish outlook, as 57.81% of open positions are long, compared to 56.81% on Wednesday.