- SWFX market sentiment is 56% bullish
- 63% of pending orders in 1000-pip range are set to BUY Gold
- GBP release might influence the bullion
The yellow metal has extended its gains on Thursday, as the bullion's price had reached the 1,260 mark. However, the commodity price was set to meet a lone resistance near the 1,258.00 mark.
The Census Bureau released Residential Building Permits data that came lower-than-expected with a forecast of 1.35M in May, and lower from the previous period.
A survey showed that builders are: "..increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability."
Bank of England at 11:00 GMT
There are no notable events set to occur during the rest of the week, which might cause shifts in the value of the US Dollar and subsequently the financial instruments that involve the Buck.
However, tune in to the bank's online webinar platform at 11:50 GMT when the coverage of the Bank of England's Official Bank Rate announcement occurs. The event is surely going to cause an increase of volatility in the British Pound.
Gold goes for new 2018 low
Gold remains guided by the 55-hour SMA for the second consecutive session. As a result, this moving average has pushed the rate to a new 2018 low and closer to the bottom boundary of a two-month descending channel and the monthly R2 at 1,255.00.
Technical indicators on the 1H and 4H time-frames being located in the strongly oversold territory should be an early indication of a soon change in market sentiment. It is not expected that the channel line is breached, as bulls should start to normalise the rate, especially following the rapid decline which began last Friday.
In terms of resistance, the yellow metal faces the 55– and 100-hour SMAs and the monthly S1 at 1.280.00. In case this cluster is surpassed, Gold should go for a test of the breached channel line and the 200-hour SMA circa 1.2890.00.
Hourly Chart
On the daily chart on Thursday Dukascopy Analysts spotted a new descending channel down pattern, which has guided the metal's decline since the middle of April.
Meanwhile, the decline of the metal is set to be paused by the various weekly support levels. For example, on Thursday, the weekly S2 at the 1,258.47 level was set to provide support.
Daily Chart
Swiss traders are still bullish
On Thursday, 56% open positions of SWFX market traders were long.
Meanwhile, trader set up orders are mostly bullish with 69% of them being set to buy the yellow mental.
OANDA traders are bullish on the pair with 79% of open positions are going long on the XAU/USD pair today. Saxo bank traders are likewise bullish with 71% long positions.