- SWFX market sentiment is 70% bullish
- Pending orders in the 1000-pip range are neutral
- US Employment data sets on Friday
Gold found support and is set to reach the 1,207.50 level. Namely, the commodity has rebounded against a strong support cluster at the 1,196.00 level.
Oil price have decreased after the US Crude Oil Inventories data release on Wednesday at 14:30 GMT. The one-minute candle lost 57 pips, or 0.77% right after the data release. In the next minutes the rate was trading at the 74.80 level.
The Energy Information Administration released the US Crude Inventories data that came out lower-than-expected of 8M, compare to forecasted 1.1M.
Gene McGillian, director of market research at Tradition Energy in Stamford, Connecticut said: "I think we need to see weeks of these numbers to really wipe out worries about how tight supplies are,".
US employment will impact gold prices
All traders should note that on Friday at 12:30 GMT the US employment data sets like the Employment Change and Average Hourly Earnings will be published. By some financial media this event is seen as the most important of them all.
Join the event's cover webinar at 12:20 GMT to participate and see the data release live.
XAU/USD short term forecast
The gold price depreciated 0.42 % since Wednesday's session. During Thursday's morning hours, the yellow metal was supported by the 200-hour simple moving average to allocate the rate at the 1,200.37 mark.
Besides, the surge cannot be prevented due to lack of significant fundamental news on Thursday!
Hourly Chart
The daily chart shows all of the patterns that were discovered during the recent full review of the chart. It can be observed that the commodity price is set to meet with the upper trend line of a large scale descending pattern.
Although, as the 55-day simple moving average is keeping the commodity price down, the dominant resistance line could be met by the metal trading sideways at 1,200.00.
Daily Chart
Sentiment remains long
Traders continued to long the yellow metal, as 70% of all trader open positions were long since Wednesday.
Meanwhile, most trader set up pending orders are set to buy the metal by closing short positions or opening additional long positions. Namely, 61% of all trader set up orders are set to buy the metal under various conditions.
The fundamental events that have occurred during the last couple of weeks have not affected the opinion of short term traders on the Swiss Foreign Exchange. They continue to long the yellow metal.