- SWFX traders are 54% bearish
- 58% of pending commands are to buy the metal
- The bullion opened at 1,290.84
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Upcoming Events: Empire State Manufacturing Index
As it was expected, the metal opened the day's trading higher than the previous close. However, the commodity price's surge was not long lived, as it began to consolidate. Meanwhile, the forecast of reaching the 1,300 mark remains in force, and is most likely going to fulfill itself.
US consumer prices fell unexpectedly last month, marking the first decline in more than a year, official figures revealed on Friday. The Labour Department reported its CPI dropped 0.3% in March, following the preceding month's gain of 0.1%, while the so-called core CPI, which excludes volatile items, fell 0.1% in the reported month, following February's 0.2% increase. Meanwhile, market analysts expected the CPI and the core CPI to come in at 0.0% and 0.2%, respectively.
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Upcoming events: Empire State Manufacturing Index
It will be a quiet Monday for macroeconomic data releases, as only the Empire State Manufacturing Index is set to be released during the day's trading session. The data will be out at 12:30 GMT. However, it is most likely that there will not be any fluctuations caused by this data release, as historically it has not shown any impact on the currency and commodity markets.
Read More: Fundamental Analysis
Gold reaches 1,295 mark
As it was forecasted, the yellow metal began Monday's trading session higher and surged above the 1,295 level. However, afterwards profit taking occurred and the bullion began a retreat from the achieved heights. Meanwhile, it is still expected that the commodity price will soon reach the 1,300 level, as the only resistance level up to that mark was the upper Bollinger band, which fluctuated near the 1,291 level. At the 1,300 mark the yellow metal's price is most likely set to change its direction, as a strong resistance cluster surrounds that level.
Daily chart
After a more throughout review it can be seen that on the hourly chart an ascending channel is also present for the short term. The short term channel is aimed directly at the 1,300 mark, as its upper trend line also meets the before mentioned strong resistance cluster.Hourly chart
Read More: Technical Analysis
Markets remain neutral
Traders remain bearish, as 54% of open positions are short. Meanwhile, 58% of pending commands are to buy the metal.
OANDA Gold traders have become bullish regarding the metal, as open positions are 53.14% long on Monday, compared to 51.15% previously. Meanwhile, traders of SAXO bank remain almost neutral, as 51.61% of open positions are short, compared to 53.31% positions on Friday.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of Gold being near 1,300 in July
© Dukascopy Bank SATraders who were asked regarding their longer-term views on gold between March 17 and April 17 expect, on average, to see the metal near 1,300 in July. Generally, 52% (-1%) of participants believe the price will be above 1,300 in ninety days. Alongside, 36% (+1%) of those surveyed reckon the currencies will trade in the range between 1,100 and 1,300 over the next three months.