- SWFX traders are 52% bearish
- 64% of pending orders in 700-pip range are set to BUY the gold
- Pair returns to 1,313.61
- Upcoming Events: US CB Consumer Confidence, New Home Sales and Yellen's speech
Due to increasing hostility between the United States and North Korea, gold traders managed to return its price back to the 1,313.61 level. However, this surge is expected to have a short-term effect. A speech that will be delivered by Janet Yellen might provide a necessary impulse for the buck's recovery. On the other hand, this impulse should be strong enough to push the pair through the weekly PP and the 55- and 100-hour SMAs.
The US Labour Department stated that the number of Americans filing for unemployment benefits dropped unexpectedly to 259K last week, suggesting that the hurricanes-related increase continued to reverse. The next move in the pair was set by the ECB President Mario Draghi comments on the banking sector risks, while avoiding to provide any hints on the Bank's monetary policy changes decision.
Yellen to speak in Cleveland
Today an economic calendar contains two events that are expected to shake the Dollar. At 14:00 GMT Conference Board Inc. will publish the update on the US Consumer Confidence but at 16:45 GMT The Fed Chair Janet Yellen will start delivering a speech on "Inflation, Uncertainty, and Monetary Policy" at the National Association for Business Economics Annual Meeting".
XAU/USD breaks descending channel
In result of the previous trading session, the yellow metal managed to recover not less than 1.26% against the buck. Such rapid advance pushed the pair not only through the psychological 1,300.00 level but also through the upper boundary of a descending channel as well as the 200-hour SMA. Most likely this sudden interest in gold was attributed to very hostile rhetoric between the US and North Korea. On the other hand, such movement could also have a technical rationale, as by the moment, the pair has reached the 1,313.61 mark that represents a point from which it entered into a downfall six days ago. This fact as well as the additional resistance set up by the weekly R1 at 1,315.94 suggests that the rate is likely cool down and eventually resume the fall.
Hourly Chart
From a daily perspective, Monday's trading session resulted in dissolution of a previously active junior descending channel. If the pair will stop slipping to the bottom, this might be a sing of transformation of a long-term channel into a rising wedge. But if the pair in the upcoming days will make a turn around and return into a red zone, there would be a need only to slightly redraw boundaries of the junior pattern.Daily Chart
Markets sentiment remains bearish
Traders of Dukascopy remain bearish on the price of gold, as 52% of open positions are short. In the meantime, 52% of pending commands are to buy the commodity.
OANDA Gold traders became bullish, as only 61% of open positions are long. In the meantime, SAXO bank traders remain neutrally bullish, as only 58% of open positions are long.