- SWFX market sentiment is 70% bullish
- 54% of pending orders in 1000-pip range are set to SELL Gold
- First notable US events and Crude Oil data will be released today
As it was expected during the couple of last trading sessions, gold prices finally fell. However, the metal's price did not reach the support levels at the 1,180.00 mark. Instead it stopped its decline, after suddenly dropping, at the 1,188.00 level.
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 volatility increased by a half of what was expected, which was a disappointment for the data release.
Gold prices will be influenced by macroeconomics on Wednesday
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, most likely, the XAU/USD will move downwards due to the 200-hour and the 100-hour SMAs resistances. Moreover, if the rate will go below the weekly PP, the rate will lose support until the 1,154.70 level.
However, the monthly PP at the 1,195.60 mark may give support to the currency to push it upwards passing through the SMAs to meet the bottom boundary of the ascending medium channel at the 1,202.00 level.
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 began late on Tuesday. However, it has retraced backwards up.
Daily Chart
Retail traders decrease long position proportion
70% of SWFX market traders are going long on the pair. The sentiment had remained unchanged for more than a week until Wednesday, as today it dropped by four percent.
Meanwhile, the bouncing around the 50/50 proportion in the buy versus sell orders sentiment has ended. Of all of the buy and sell orders on the Swiss Foreign Exchange 60% were set to buy gold.
Meanwhile, at other marketplaces long term sentiment remains persistent. At OANDA 74% of traders are long. Likewise, SAXO Bank traders were 71% long on the yellow metal's price.
The most notable spottable facts are the selling done by short term retail traders during the last 24 hours and the domination of pending orders to buy the metal. They indicate that during the drop retail traders were closing long positions, which they might reopen, if the metal resumes its surge.