- SWFX traders are 56% bullish
- 65% of pending orders in 500-pip range are set to BUY the gold
- Pair approaches 1,290.00 mark
- Upcoming Events: FOMC Member Kashkari Speaks
Due to continuous fears related to possible escalation of the North Korean crisis as well as some other fundamental factors, the gold continued to gain value against the buck yesterday. Today the pair is expected to reach and test the 1,290.00 level. A rebound is likely to follow, as the rate is simultaneously trading in rising wedge pattern. On the other hand, market sentiment remains 56% bullish.
The Labour Department showed that the US job market faced unexpected decrease in jobs, as the economy lost 33K positions in September, reflecting the impact of Hurricanes Harvey and Irma. However, the unemployment rate declined to a new low of 4.2% in the same period. Following the report, market expectations for the Federal Reserve to raise rates in December were still high.
Quiet Tuesday
Expect for the Fed Governor Kashkari speech at the Regional Economic Conditions Conference, an economic calendar does not contain any other fundamental data releases for this day. On the other hand, there is a need, in general, to monitor developments on the Korean peninsula, which are likely to cause some volatility.
XAU/USD soars towards 1,290.00
Because of the robust demand on gold from two largest Asian countries as well as continuous fears related to the North Korean crisis, the exchange rate continued to head to the top towards the 1,290.00 target. During the surge, the pair has even formed a minor rising wedge pattern whose breaking point is located exactly near the above mark. In addition to that, there is a need to take into account that an area near the 1,294.00 level represents a location of the 55-day SMA. Hence, one of those technical barriers is likely to turnaround the pair and gives it an impulse to continue to plunge towards the bottom edge of a senior ascending channel. However, if geopolitical situation continued to be as intense as it is now, investors will continue to seek safe heavens, such as gold.
Hourly Chart
In result of the previous trading session and thanks to the bullish market sentiment the continued to move to top, thus breaking through the upper edge of a junior descending channel. As a result, now the rate basically has a free path up until the 55-day SMA near 1,293.50. This scenario contradicts to the preceding assumption, according to which the pair was expected to slip to the bottom edge of a larger ascending channel.Daily Chart
Markets sentiment remains neutrally bullish
Traders of Dukascopy are bullish on valuation of the gold, as 56% of open positions are long. In the meantime, 56% of pending commands are to buy the commodity.
OANDA traders are bullish, as 71% (+0%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 60% (+2%) of open positions are also long.