- SWFX traders are 53% bearish
- 76% of pending orders in 1000-pip range are set to BUY gold
- Commodity price bounces off 1,345.00
- Empty first half of the week for fundamentals
The surge of the yellow metal on Tuesday had turned sour, as the pair had declined down below the 1,335 mark. Although, the decline of the commodity was expected, as the price had surged for too many consecutive trading sessions.
The US retail sales rose in December, as consumers bought more goods and the previous month's figures were revised up, indicating that the country's economy finished 2017 with solid momentum. The Commerce Department stated that retail sales increased 0.4% in December, following an upwardly revised 0.9% gain previously.
Empty start of the week
The economic calendar for the week in regards to the strength of the metal's price is empty until Thursday.
However, swing traders should tune in for various swing trades scheduled to be covered by the Dukascopy research team during the week.
XAU/USD declines on Tuesday
Gold was stable against the US Dollar on Monday. The pair reached a new four-week high of 1,344.03 early in the session, and remained trading in the 1,345.00/1,340.00 area for the whole session.
As apparent on the chart, the yellow metal fell short from its nearest resistance—the weekly R1—at 1,348.83. Thus, bulls might try to realise these gains, while further advance is unlikely.
Meanwhile, by the middle of the day the metal had extended its losses, as it had passed significant support at the 1.335.00 mark, and only stopped at 1,331.00, where a pivot point is located at.
However, it seems that the rate had already began a rebound and the surge might resume. If that is the case, the hourly chart's ascending channel pattern will require adjustment.
Hourly Chart
In regards to the daily chart there is no additional information to be drawn from it. By looking at it, one still sees the surge continuing up to the 1,350.00 mark.
Daily Chart
Market sentiment is neutral
SWFX market sentiment is bullish on Gold, as 54% of open positions are short. Meanwhile, 66% of pending commands are set to buy the commodity.
OANDA traders are bearish, as 57% of open positions are short. In the meantime, SAXO bank traders are 52% bullish.