- SWFX market sentiment is 63% bullish (+1%)
- 55% of pending orders in 1000-pip range are set to SELL Gold
- Start of the week at 12:00 GMT
Gold is starting to show some signs of a recovery.
The Energy Information Administration released the US Crude Levels data that came out better-than-expected of 5.8M, compare to forecasted negative 3.4M.
The managing editor from S&P Global Platts, James Bambino, said: "The build brings current stocks to around 1.8 percent below the five-year of EIA data, in from over 4 percent below the week prior. his means that not only are crude stocks rising, but they are also lining up more closely to historical norms."
Empty Monday's session
There is nothing notable on the Economic Calendars for Monday. Instead, join the Dukascopy Analytics weekly economic calendar review at 12:00 GMT.
XAU/USD recovers from 1,215
Gold grew stronger against the US Dollar on Friday, being boosted by fundamental events. As a result, it returned in the breached senior channel and subsequently surpassed the 55– and 100-hour SMAs.
It is likely that the yellow metal edges higher during the following hours, supported by the 100-hour SMA. This appreciation might not be long-lived due to the 55– and 100-period (4H) and the 200-hour ones located in the 1,240.00 area. This resistance cluster is expected to pressure the pair south down to the aforementioned 55– and 100-hour moving averages circa 1,225.00.
In case 1,240.00 is breached to the upside, no resistance is apparent until 1,265.00.
Hourly Chart
Gold has been guided in a descending channel against the US Dollar since mid-April. During these few months, the commodity has depreciated by nearly 10%.
Technical indicators on the daily time-frame are located in the oversold territory. This suggests that the pair's long-term movement should be tended north. The expected target during the following weeks is the breached senior channel and the 200- and 100-day SMAs near 1,300.00.
Daily Chart
Bulls dominate sentiment
63% open positions of SWFX market traders are long. The same situation is apparent with pending orders which were standing at 57% mid-day.
The data reveals that although the bullion has retreated, retail traders have even opened new long positions in the expectations of a surge. Most likely, most of the traders see the continuation of a decline as a statistic improbability.
OANDA traders are bullish on the commodity with 82% of open positions being long on the XAU/USD pair today. Saxo Bank traders are likewise bullish with 71% long positions. This shows that institutional traders are considerably bullish on Gold, while retail ones are more cautious.