- SWFX traders are 53% bullish
- 65% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,219.36
- Upcoming Events: US PPI; US Unemployment Claims; Janet Yellen Testifies
The metal is not continuing perfectly in accordance with the previous forecast. However, the gains are even larger than expected for most traders. The surge, which was expected to occur by the end of the day, occurred already on Wednesday. Moreover, additional gains are expected.
On Wednesday, the Chair of the US Federal Reserve Janet Yellen testified on the Semi-annual Monetary Policy Report before the House Financial Services Committee in Washington DC. In the prepared testimony, Yellen said that the country's economy was strong enough for the central bank to continue to increase interest rates and start winding down its massive balance sheet as soon as this year.
Janet Yellen testifies
The main event of Thursday will be the fact that Janet Yellen will continue to testify at 14:00 GMT. However, before that some traders might want to take advantage of the volatility caused by the data sets, which will be released at 12:30 GMT. Namely, the US PPI and Unemployment Claim data sets will be out. The data release will be covered by the Dukascopy Research team on the bank's live webinar platform.
XAU/USD touches 1,226 level
As Janet Yellen began giving her testimony on Wednesday, the yellow metal's price jumped. During the move the commodity price broke out of the ascending channel pattern. However, as the chairwoman ended the speech, the metal had retreated back to the 1,220 level. Moreover, something unordinary was happening on Thursday morning. Although theoretically the pattern is broken, the upper trend line of the ascending channel was still providing resistance to the commodity. Meanwhile, the 200-hour SMA and the monthly S1 were providing support to the metal. Due to that reason it can be expected that additional gains will be scored by the end of the week.
Hourly Chart
The daily chart shows a free range to surge up to the 1,230 mark. However, that is not likely due to the levels of significance of the smaller time frame charts.Daily Chart
SWFX market is almost neutral
Traders of Dukascopy have not changed their open position proportions, as 53% of traders are bullish. However, 65% of trader set up orders are to buy the metal.
OANDA Gold traders remain with a bullish outlook, as open positions are 75.28% long on Thursday. In the meantime, SAXO bank sentiment is 65.01% bullish.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being above 1,300 in three months
Traders who were asked regarding their longer-term views on gold during the last month expect, on average, to see the metal around 1,300 in October. Generally, 59% (-1%) of participants believe the price will be above 1,300 in ninety days. Meanwhile, most people see the bullion in the 1,350-1400 range, as 31% (-1%) see the metal in that range.