- SWFX market sentiment is 74% bullish
- 58% of pending orders in 1000-pip range are set to SELL Gold
- No notable events are scheduled until Wednesday
By the middle of Tuesday's trading session the yellow metal had confirmed the previously broken pattern's support as resistance and began a decline. The target for the metal still remained at the 1,180.00 mark.
The Energy Information Administration released the US Crude Levels data that came out lower-than-expected of negative 4.3M, compare to forecasted negative 2.2M. The released numbers mean that there is a lot of unused crude oil leftovers across the United States, which might slow down the US economy.
The volatility increased by a half of what was expected, which was a disappointment for the data release. The reason behind such numbers is US sanctions against the consumers of Iranian Oil.
Gold prices will be influenced by macroeconomics on Wednesday
During the first half of the week there will be no notable data releases occurring in the United States. On Wednesday, the US PPI data release will occur at 12:30 GMT. The event will be covered by Dukascopy Analytics on the bank's webinar platform.
In addition, commodity traders will be watching the Wednesday's release of the weekly US Crude Oil inventories that have been known to cause 50 pip bounces. The data will be published at 14:30 GMT.
XAU/USD short term forecast
In regards to the near future, the yellow metal will surge upwards to the bottom boundary of the ascending medium channel, but might be stopped due to the strong resistance of the 200-hour simple moving average and the previously broken medium channel line.
On the other hand, the rate might use support of the monthly PP at the 1.195.60 mark, which may push the yellow metal upwards to pass the medium channel line and the simple moving averages.
Hourly Chart
The pattern, which was expected to guide the commodity price as high as the 1,230.00 level, was broken on Monday. Namely, the rate passed the pattern's support line.
Due to that reason and the lack of any support as low as the 1,176.00 level, a decline is expected to occur in the upcoming trading sessions.
Daily Chart
Markets remain largely bullish
74% of SWFX market traders are going long on the pair. The sentiment has remained unchanged for more than a week.
Meanwhile, there is a certain indecisiveness in regards to the trader set up pending orders. On Monday. 52% of them were set to sell. On Tuesday, 54% of trader set up orders were set to buy the metal.
Meanwhile, at other marketplaces long term sentiment also remains persistent. At OANDA 74% of traders are long. Likewise, SAXO Bank traders were 72% long on the yellow metal's price.
It can be clearly seen that in the short term the market does not have a clear opinion on the metal's direction. However, in the longer term, everyone is expecting gold prices to increase.