- Market sentiment is 52% short
- 66% of pending orders in 1000-pip range are set to BUY gold
- Metal's price is back above 1,350 mark
- US PPI data and various small releases
The breaking of the resistance has given more gains. However, there was a very notable event, which resulted in a drawdown on Wednesday. The release of the US CPI and Retail Sales caused the metal's price to retreat below 1,320.00 mark before the surge to the 1,350 level occurred.
The release showed that the US Consumer Price Index surged 0.5% over the course of January, beating forecasts for only a 0.3% rise. Projections for further price pressure strengthened as well as the Fed is largely expected to raise interest rates again in December.
The separate report showed that retail sales in the United States marked an unexpected decline of 0.3%, following a downwardly revised December's figure.
US PPI and other data
On Thursday there is one notable data release to watch out for. Namely, the US PPI is set to be published at 13:30 GMT. However, the reaction is almost impossible to forecast, as it is set to be released together with a bunch of various other data sets.
The release is set to be covered by the Dukascopy Research team on the bank's live webinar platform. Tune in by clicking on the notification on the Dukascopy trading platforms. Or one can just google the Dukascopy webinars.
XAU/USD reaches new high level
Gold spent the first part of Wednesday's trading session calmly, as it managed to reverse the from 23.60% Fibo retracement and approach the upper boundary of the breached three-week channel.
The better-than-expected US CPI had an immediately positive impact on the Greenback, as it managed to push the rate as low as the 1,318.10 mark.
However, the 55– and 200-hour SMAs proved to be strong support, thus allowing for the yellow metal to surge up to a new February high of 1,355.00.
The Asian session started with no changes to the exchange rate, thus suggesting that bulls might finally be ready to surrender their positions. The nearest resistance is the weekly R2 at 1,362.40, while two strong support clusters are located at 1,340.00 and 1,325.00.
Hourly Chart
The previous channel down pattern of the daily chart has been broken. Due to that reason a review of the metal's price is being conducted.
What can be observed is that the metal's price is trading in a long term ascending channel pattern. In the borders of that pattern there should form a new medium term pattern. However, it might take some time for it to reveal itself.
Daily Chart
Market sentiment becomes bullish
SWFX market sentiment has become bearish, as 53% of open positions are long. Meanwhile, 55% of pending commands are once again to buy the commodity.
OANDA traders are bearish, as 54% of open positions are short. Meanwhile, SAXO bank traders are neutral.