- SWFX market sentiment is 61% bullish
- 56% of pending orders in 1000-pip range are set to BUY Gold
- Monday calendar webinar
The yellow metal has booked more gains against the US Dollar, as it continues to surge without showing signs of stopping.
Oil prices dropped down after US Crude Oil Inventories data release on Thursday at 15:00 GMT. The one-minute candle lost 91 pips, or 1.24% to continue fluctuating in 72.315 area.
The Energy Information Administration released the US Crude Levels data that came out better-than-expected of 1.2M, compare to forecasted negative 4.4M.
Head of commodities strategy at PNB Paribas Harry Tchilinguirian stands: "When there is consolidation in the market, there is also the expectation of an eventual price breakout in either direction. So in the options market, the volatility gets bid up,"
Weekly calendar webinar
As it is accustomed to Monday, there are no notable data releases occurring during the day. Instead join the webinar platform at 12:00 GMT, when the weekly calendar review will occur.
XAU/USD continues to surge
The yellow metal on Monday morning booked new high level near the 1,260.00 mark. Moreover, during the surge the pair broke the resistance of a medium term descending channel pattern.
The metal is set to continue to gain, as the bullion faces no resistance up to the 1,261.00 level. At that level the commodity price is set to meet with the resistance line of the dominant ascending long term channel.
However, for that to occur, the bullion will need additional support, which could be provided by the various simple moving averages.
Hourly Chart
The surge is pretty normal from the perspective of the daily chart. Namely, a rebound is occurring in the borders of a dominant descending pattern.
The metal's price is aiming to reach the resistance of the monthly PP, which is located at the 1,270.00 mark.
Daily Chart
Retail traders are riding the surge
61% open positions of SWFX market traders were long during the midday hours. The Swiss Market sentiment previously was 60% long.
Meanwhile, trader set up orders are 60% bullish. The orders previously were only 61% bullish.
The data reveals that all of the retail traders that were expecting a surge, are profiting. Moreover, there are additional traders which intend to buy the metal, as it goes up. That could drive the commodity price even higher.
OANDA traders are bullish on the pair with 82% of open positions are going long on the XAU/USD pair today.
At the same time, Saxo Bank traders were likewise bullish with 72% long positions. The bank's traders have closed some long positions, as on Friday 75% of open positions were long.