- SWFX traders remain bearish with 54% of open positions being short
- 55% of pending commands are to buy the bullion
- The metal's price opened the day's trading at 1,265.74
- Upcoming Events: US PPI
On Tuesday morning the yellow metal traded in the range between the 20 and 55-day SMAs, which were expected to hinder the fall of the yellow metal. However, on the hourly chart the pair still faces almost no support levels, which could hold back the fall of the bullion.
The number of Americans filing for unemployment aid dropped less than expected in the week ended June 2. The Labour Department reported on Thursday that initial jobless claims fell 10K to 245K last week, following the preceding week's upwardly revised figure of 255K. Meanwhile, market analysts anticipated a bigger decrease to 241K during the reported week. Nevertheless, claims remained below the 300K level for the 118th consecutive week, the longest streak since 1973.
One US data release
Until the middle of Tuesday's trading session there are no notable macroeconomic data releases scheduled, which might affect the price of the yellow metal. One can notice that the next notable data release for gold will be the publication of the US PPI and Core PPI data sets at 12:30 GMT. That data release is scheduled to be also covered by the Dukascopy research team on the bank's live webinar platform.
Gold breaks another pattern
The yellow metal no longer trades in the borders of any short or medium term pattern, as the commodity price has broken out of the short term descending channel in the previous 24 hours. The metal's future price movements are likely to be influenced by the fundamental data release at 12:30 GMT on Tuesday, which will affect the strength of the US Dollar. However, from a technical perspective it can still be expected that the price will decline, as the 55-hour SMA was moving in on the metal's price from the upside near the 1,270 mark. Due to that factor it can be expected that the commodity price will face pressure from the upside, which might eventually force it lower.
Hourly Chart
The daily chart reveals that the support of the 20-day SMA was passed during Monday's trading session. On Tuesday the simple moving average was providing resistance to the commodity price. Meanwhile, the support to the yellow metal is being still provided by the 55-day SMA, which is located at the 1,260 mark.Daily Chart
Markets are almost neutral
SWFX trader sentiment has not changed even slightly since Friday. Traders are clearly bearish, as 54% of open positions are short on Tuesday. Meanwhile, 55% of trader set up orders are to buy the metal.
OANDA Gold traders remain bullish, as open positions are 55.02% long on Tuesday, compared to 56.75% previously. Meanwhile, traders of SAXO bank are no longer bearish and have joined the bulls, as 55.26% of open positions are long, compared to 54.69% bearish positions on Monday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being near 1,350 in September
Traders who were asked regarding their longer-term views on gold between May 13 and June 13 expect, on average, to see the metal just below 1,350 in September. Generally, 37% (-2%) of participants believe the price will be above 1,350 in ninety days. Meanwhile, there are those, who expect the price to be below 1,300. Namely, 32% of respondents believe that the price will be below the mentioned mark.