- SWFX traders are 51% bearish
- 63% of pending commands are to buy the metal
- The bullion opened at 1,253.59
- Upcoming Events: US Final GDP; US Unemployment Claims; FOMC Member Kaplan's Speech
Pending home sales increased substantially and, thus, surprised many experts who did not expect such a leap. In February, the Pending Home Sales Index spiked 5.5% and reached the highest level in almost a year and the second highest level in over a decade. Growth was partially attributable to a record-warm end of winter, which motivated people to start looking for a house more actively than usual. Another factor that boosted sales was households' concern over a possible rise of interest rates by the end of this year. However, the main reason behind increased sales was strong demand, which was driven by improving economic conditions in the US. Yet, many potential home-buyers faced the problem of supply shortages, which negatively impacted prices, especially in the lower and mid-market price ranges.
Other data released on Wednesday revealed that US crude oil inventories rose 900,000 barrels last week, following the preceding week's gain of 5 million barrels. Meanwhile, analysts anticipated a climb of 1.2 million barrels during the reported week. Oil prices rose shortly after the release, with WTI jumping above $49 per barrel. Data suggests that the OPEC production deal cut has finally started bearing fruits.
Upcoming events: US GDP and Unemployment Claims
The quiet days for fundamentals this week have passed. Today, at 12:30 GMT, there will be the start of incoming US data. At that time the US Final GDP and the US Unemployment Claims will be released. This data release will be covered live on the Dukascopy webinar platform by the Dukascopy research team. Moreover, at 15:00 GMT FOMC member Kaplan is set to give a public speech.
Gold remains near 1,250 mark
Daily chart: The yellow metal continued to trade between two clusters of significance on Thursday morning, as it had done for the past two trading sessions. From the upside the bullion faces the first weekly resistance at 1,254.87, which is combined with the 200-day SMA at 1,257.79. From the downside the currency exchange rate is finding support in the 50.00% Fibonacci retracement level at the 1,248.96 mark and the already broken down-trend line, which remains significant at 1,246.78. It is highly likely that the bullion will continue the surge in the near future.Daily chart
Hourly chart: The hourly chart shows that the commodity price is clearly bouncing from one to another of the before mentioned levels of significance, as it is heading for a possible medium term ascending channel's lower trend line. By this pace the reaching of the support might occur only in the second half of Friday's trading session.
Hourly chart
Markets are bullish
OANDA Gold traders remain with a bullish outlook, as open positions are 56.16% long on Thursday, compared to 56.42% previously. Meanwhile, traders of SAXO bank have decreased the percentage of long positions, as 52.31% of open positions are long, compared to 53.71% on Wednesday.