- SWFX traders are 52% bullish
- 65% of pending orders in 500-pip range are set to SELL the gold
- Gold price spikes by 0,75% within one hour
- Upcoming Events: US Factory Orders
Despite a short-term spike caused by General Flynn admission of guilt the pair is still fluctuating near the bottom boundary of a long-term dominant ascending channel. Most probably the next two three days the pair will spend in consolidation between the 1,285 and 1,270 levels until it makes a decisive breakout.
US consumer inflation growth weakened in October, as the hurricane-related increase in purchases of motor vehicles started to fade. The Fed's closely watched inflation measure, the Core PCE Price Index excluding energy and food increased 1.4% year-over-year in October, though the figure undershot the bank's 2% target for more than 5 years. Recent economic data strengthened projections for the Fed to raise borrowing costs once again in December.
Empty day
At 15:00 GMT the US Census Bureau will release an update on change in factory orders. However, this event is not expected to cause any notable volatility in the markets.
XAU/USD trades near upper boundary of dominant channel
In full accordance with expectations, in first half of the previous trading session the buck continued to trade against the gold in a limbo between the 1,270.50 and 1,276.70 marks that were located just above the lower trend-line of a large dominant ascending channel. However, the subsequent admission of guilt by General Flynn led to 0.76% rise in demand for safe haven metal just in one hour. But as it was an impulse reaction, a combination of the 100- and 200-hour SMAs managed to neutralize the surge. Since there are no impactful news planned for today, the rate is likely to spend this trading day between the 55-hour SMA at 1,279.00 and the above bottom boundary located near 1,270.00. In larger perspective, bulls are expected to take the lead once again, although the pair might prolong consolidation for the next couple of days.
Hourly Chart
In beginning of the previous week the pair has made a rebound from the upper trend-line of a medium-term descending channel. At the moment, the buck is appreciating against the gold in a minor descending channel and is testing the bottom boundary of a long-term dominant ascending channel. In theory, the larger pattern should sustain. However, without proper impulse the might fail to cross a combination of the weekly and monthly PP as well as the 55- and 100-day SMAs. Generally, there is a need to take into account that the optimism related to adoption of tax bill by Senate is likely to continue to strengthening the buck.
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 72% (+0%) of open positions are long, compared to previous trading day. In the meantime, SAXO bank traders are less bullish, as 62% (-1%) of open positions are long.