XAU/USD forms little symmetrical triangle

• SWFX traders are 52% bullish
• 73% of pending orders in 500-pip range are set to BUY the gold
• Gold price fluctuates between 1,297.00 and 1,292.00
• Upcoming Events: US Prelim GDP, Crude Oil Inventories and Fed Chair Yellen Testimony

Previous trading session the pair spent fluctuating between the 1,297.00 and 1,292.00 level amid the encouraging macro news from the US and disturbing news from North Korea. As a result, it has formed a little symmetrical triangle, which is expected to be broken in northern direction.

The Conference Board revealed that the Consumer Confidence Index for the US rose to the 129.5 mark in November, reaching the highest level in 17 years. The strong increase mostly reflected households' optimistic perceptions of the job market. Economists noted that bullish consumers in conjunction with tight job market were reasonable grounds for the Fed to make the interest rate hike in December, despite worries over persistently low consumer inflation growth.

First GDP outlook

XAU/USD forms minor symmetrical triangle

The second half of previous trading session the exchange rate spent in horizontal movement. A release of better than expected US consumer sentiment data pushed it to the bottom, while another launch of ICBM by North Korea gave a reason to continue the surge. Technically, the southern side was protected by the 55- and 100-hour SMAs that are lying along the lower support line of the rising wedge formation, while the northern side contained the weekly and monthly R1. Although the pair has formed a minor symmetrical triangle, the pair is still expected to make a breakout to top. This assumption is based on market sentiment, which is 52% bullish as well as dominance of the larger pattern. However, there is a need to notice that release of the US Prelim GDP can lead to short-term strengthening of the buck.

Hourly Chart

The pair is continuing to trade in the rising wedge formation, even though a combination of the weekly and monthly R1 two times in a row managed to neutralize the breakout. A new release of the American macro data might halt the surge for another day. However, it is unlikely to change the trend, according to which the pair is expected to reach the 1,300.00-1,302.00 level.

Daily Chart

Markets sentiment remain bullish

Traders of Dukascopy are neutral on valuation of the gold, as 52% of open positions are long. Accordingly, 52% of pending commands are to buy the commodity.

OANDA traders are bullish, as 64% (-1%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 56% (-1%) of open positions are long.

Spreads (avg, pip) / Trading volume / Volatility