- SWFX market sentiment is 72% bullish
- 85% of pending orders in 1000-pip range are set to SELL Gold
- Minor US data at 12:30 GMT
Gold prices have booked a new low level. However, after the reaching of the low level the bullion began to regain some of the losses on Thursday.
The Energy Information Administration released Crude Oil Inventories data that came better-than-expected of 6.8 Million to forecast –2.6 Million. This data set is primary gauge of supply and demand imbalances in the market. The data may affect changes in production levels and price volatility.
Kevin Nicholson, the chief market strategist at RiverFront Investment Group said: "Really, everything today has been playing on the idea of the trade tensions and Turkey. Obviously crude is down today because U.S. stockpiles rose over the last week to their highest level since March 2017".
Minor US data incoming
Meanwhile, note that minor US data being released at 12:30 GMT might influence the currency exchange rate. The event's cover will begin at 12:20 GMT on the Dukascopy live webinar platform.
XAU/USD reverses at 1,160.00
Gold continues to decline against the US Dollar for the third consecutive session. The pair breached the senior channel down early on Wednesday, being followed by a 2.38% fall down to 1,165.00.
On Thursday morning, technical indicators were located in the strongly oversold territory. This indicates that bulls may want to recover some of their positions lost during the previous trading sessions.
An important resistance to look out for is the 55-hour SMA at 1,190.00. The ultimate daily high should be the monthly S1 and the 200-hour SMA circa 1,205.00. Meanwhile, support is set by the monthly S3 at 1,148.00.
Hourly Chart
By the middle of Thursday's trading session the bullion had lost 15.00% since the middle of April. Moreover, the recent breaking of the drawn dominant descending channel pattern has left the metal's price without any notable support.
Namely, the metal was set to be supported only by the third monthly support pivot point at the 1,147.00 mark.
Daily Chart
Massive amount of long gold positions
73% of SWFX market traders are going long on the pair. However, the sentiment might slightly decrease, as 57% of all trader set up orders are set to sell the metal, compared to 53% on Wednesday.
OANDA traders are also bullish on the commodity with 78% of open positions being long today. Meanwhile, SAXO Bank traders have decreased their long position amount, as, instead of the previous 70% long positions, 59% of the bank's traders were long on Thursday.
A number of conclusions can be made from the information. The brokerages with more long term traders due to the decline of the metal have dumped the metal. It might be possible that the holders have gotten scared.
In the meantime, short term traders of the Swiss marketplace are also preparing to short the bullion, as a clear majority of selling pending orders instead of buy orders has appeared.