- Swiss market sentiment has become 51% bearish
- 57% of pending orders in 1000-pip range are set to BUY Gold
- Canadian data at 12:30 GMT
The yellow metal's price has made an attempt to surge above the resistance of 1,300. However, the price failed to increase, as it met with a dominant resistance line.
The Institute for Supply Management released Purchasing Managers Index data that came out better-than-expected of 58.7, compared to the 57.3 in the previous period.
"The upturn has stretched supply chains to the extent that May saw the greatest lengthening of delivery times in the near-ten year history of the survey," said Chris Williamson, Chief Business Economist at IHS Markit.
Canadian data at 12:30 GMT
First release of the week, which might have impacted the US Dollar's strength on Tuesday and subsequently all financial instruments that involve it, was also the last one.
However, macroeconomic data release traders still have data to watch on Wednesday. Namely, the Canadian Trade Balance is set to be published at 12:30 GMT. Moreover, the data release will be covered at 12:20 GMT on Dukascopy Bank's live webinar platform.
Gold tries to overcome 1,300.00
Following a rather calm Tuesday morning, bulls started to dominate Gold later in the session, thus dashing through the 55– and 100-hour SMAs. This bullish momentum halted shortly after at the 200-hour moving average located near 1,300.00.
This line which has proved to be a strong resistance level this week was breached early today. In case the pair manages to remain above this long-term SMA, it is likely that the rate continues to strengthen until the 200-period (4H) SMA located near 1,310.00.
Conversely, a failure to surpass above this psychological level should trigger sellers and result in a decline. A possible southern target is the 61.80% Fibo retracement at 1,285.00.
Hourly Chart
The XAU/USD commodity price has maintained it senior descending channel since April 10. The pair has tested the upper boundary for the second time on May 31, and now on June 5.
Due to this trend line of the descending channel and the various resistance levels just above the 1,300.00 mark the commodity price does not seem to be likely to surge in the few upcoming trading sessions.
Daily Chart
Swiss traders remain bullish
During today's morning hours of the London trading session 53% of open Swiss Foreign Exchange XAU/USD positions were bullish. On Tuesday, the proportion was standing at 54%.
Meanwhile, trader set up orders are bullish with 59% of them being set to buy the GOLD. Previously, we observed a large proportion of sell positions in the 1000-base point range. However, that was gone on Wednesday, indicating that the short term selling has already occurred.
OANDA traders remain largely bullish, as 69% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 70% of total positions being long.