- SWFX market sentiment is 59% bullish
- 67% of pending orders in 1000-pip range are set to BUY Gold
- Various releases at the end of the day
On Wednesday the yellow metal reached the lower trend line of the speculated channel up medium term pattern.
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,"
Crude Oil and Canadian data
There will be data releases occurring during the day, which will the financial markets. Namely, the Reserve Bank of Canada will release their interest rate at 14:00 GMT. Afterwards at 14:30 GMT the US Crude Oil Inventories data release will take place.
XAU/USD plunged on Tuesday
The yellow metal lost value against the US Dollar significantly on Tuesday, thus closing the business day with a 1.01% plunge. As a result, the commodity revealed a new junior descending pattern. This strong decline was stopped by the bottom border of a dominant ascending channel.
It is more likely that the bearish momentum continues in this session, thus sending the bears to breakout from the lower boundary of the dominant channel during the following trading sessions. The nearest support is the monthly pivot point at 1229.59. However, it is unlikely that the support level will breach today.
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
59% open positions of SWFX market traders were long during the midday hours. The Swiss Market sentiment previously was 61% long.
Meanwhile, trader set up orders are set to buy the metal in 62% of all cases. The orders haven't changed this week, as they remain near the 60% bullish zone.
The data reveals that although the bullion has retreated, retail traders have not closed their long positions. Moreover, not even the set up buy orders have been cancelled.
OANDA traders are bullish on the commoditywith 80% of open positions being 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 not changed their opinion since Monday.