- SWFX market sentiment is 64% bullish
- 62% of pending orders in 1000-pip range are set to BUY Gold
- Weekly calendar review at 12:00 GMT
On Monday morning it could be observed that the yellow metal's price pierced the support of a medium term ascending channel pattern. Due to that reason a decline down to the 1,200 mark might be possible.
The Census Bureau released the monthly Durable Goods Orders that came out lower-than-expected of 1.0% compare with forecasted 3.0%, but better than previous period.
"A senior investment manager Patrick O'Donnell, from Aberdeen Standard Investments, said: "It looks like the European side is trying to acquiesce to Trump's demands. They've got more to lose if tariffs look to be placed on autos, for example. So over multi-month horizon, we'll probably see lower tariffs globally".
Start of the week webinar at 12:00 GMT
This Monday is set to be empty, as it is accustomed to. Meanwhile, note that the day will have the usual weekly economic calendar review webinar at 12:00 GMT.
XAU/USD breaches short-term pattern
Bears continue to dominate XAU/USD in the short term. It fell below the 55-, 100– and 200-hour SMAs on Thursday and has since been trading below this cluster. The yellow metal tested this now-resistance at 1,228.00 mid-Friday, but failed to gather the necessary bullish momentum to actually break through.
Meanwhile, the rate breached the prevailing short-term ascending triangle two sessions ago and already managed to retrace from its bottom boundary. From theoretical point of view, this should be followed by further decline, setting the senior channel at 1.210.00—a one-year low—as a possible downside target.
This fall, however, should be limited today, as Gold is likely to re-test the 1,228.00 level once more. Another resistance is a two-week high at 1,235.00.
Hourly Chart
The previously described narrow ascending channel was broken by the resistance of the 1,235.00 level. However, the move on a larger scale could have been anticipated, as the commodity price remains in a large scale descending channel pattern.
Daily Chart
Swiss traders are still bullish on XAU/USD
64% open positions of SWFX market traders are going bearish. The same situation is apparent with pending orders which were set to buy the bullion in 60% of all cases on the Swiss Foreign Exchange.
OANDA traders are bullish on the commodity with 80% of open positions being long on the XAU/USD pair today.
Saxo Bank traders are likewise bullish with 74% long positions. This shows that institutional traders are considerably bullish on Gold, while retail ones are more cautious.