- SWFX market sentiment is 74% bullish
- 52% of pending orders in 1000-pip range are set to SELL Gold
- No notable data for gold
On Thursday, the yellow metal's price remained near the 1,200.00 mark, where it had retreated down after another attempt to surge. The near future of the bullion was set to depend on the lower trend line of an ascending pattern.
The Energy Information Administration released the US Crude Levels data that came out lower-than-expected of negative 2.6M, compare to forecasted negative 0.7M. This data release shows the change in the number of barrels of crude oil held in inventory by commercial firms during the past week .
A senior analyst at Dukascopy Bank SA comments: "The data release was unusual because the reaction on the oil price up immediately was followed by the price drop in the following minutes. The price drop most likely was caused by market participants, who took advantage of the increased liquidity and sold their oil assets."
Only notable data is Canadian on Thursday
The week's last notable event will be the publication of the monthly Canadian GDP at 12:30 GMT. This data set is set to give the largest reaction from all of the week's releases, as CAD GDP has been constantly giving a reaction of at least 40 base points each month on the USD/CAD.
XAU/USD remains near 1,200.00 level
The gold price decreased to the 1,200.00 mark again on Thursday morning, which was the same price level as it was for the previous trading session on Wednesday. Meanwhile, note that the yellow metal bounced off the bottom of the junior ascending line during the morning hours on Thursday.
The rate is still waiting for the squeeze of the 55– hour and the 100-hour SMA's which might force the rate to breakout upwards or downwards. The 200-hour SMA is below the rate which signals traders that changes are going to perform soon.
Hourly Chart
Two descending patterns can be observed on the daily chart. One of the patterns is junior to the other one and their scales differ drastically. The junior pattern represented the metal's decline in the borders of the larger trend.
By the end of August the junior pattern was broken, as it was expected and should have occurred in consistence with the larger pattern. As a result, a surge was going on, which was hindered by the 1,200.00 and 1,210.00 levels.
In general, the bullion no longer has any resistance. The commodity price is heading for the 1,235 mark, which it should reach by the middle of September.
Daily Chart
Markets remain largely bullish
74% of SWFX market traders are going long on the pair. The sentiment remained almost unchanged since Tuesday.
Meanwhile, the proportion of buy orders of total set up orders remains near the 60% level, as on Thursday 58% of trader orders were set to buy.
Meanwhile, at other marketplaces long term sentiment also remains persistent. At OANDA 75% of traders are long. Likewise, SAXO Bank traders were 71% long on the yellow metal's price.