- SWFX market sentiment is 74% bullish
- 63% of pending orders in 1000-pip range are set to SELL Gold
- No data impacting gold
On Friday a breakout to the upside occurred on the yellow metal's charts. The action did not stop on Monday.
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".
Nothing impacting the bullion
Monday's and Tuesday's economic calendars are empty. It is the third week of the month. Due to that reason it is no surprise that there are no data releases scheduled.
Meanwhile, note that the Dukascopy webinars program is still full of various programs. Namely, join the Dukascopy Analytics team for the weekly macroeconomic calendar analysis at 12:00 GMT. In addition, at 13:00 GMT there will be a stock review webinar of the Apple stock.
XAU/USD breaks resistance and surges
The yellow metal's price on Monday morning continued the surge, which began on late Friday. On Friday, the pair managed to break the resistance of the 55-hour SMA and a monthly pivot point.
On Monday morning the most relevant aspect of the commodity price's chart was the fact that the price had reached above all notable close by resistance levels. Namely, it faced no resistance levels as high as the 1,196.70 level.
At that level the 200-hour simple moving average was the only resistance level, which could stop the price from reaching back above the 1,200.00 mark.
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.
However, the rate found support in the 1,160 mark and managed to surge above the monthly S2, which provided resistance at the 1,180.00 mark.
Daily Chart
Massive amount of long gold positions
74% of SWFX market traders are going long on the pair. Meanwhile, it was previously thought that the domination of pending sell orders in the market might push the price down.
Although, since Friday the orders were neutrally shifted to the buy side, as 51% of all pending orders were set to buy the metal on Monday.
OANDA traders are also bullish on the commodity with 78% of open positions being long today. Meanwhile, SAXO Bank traders were 69% long on the yellow metal's price.