- SWFX market sentiment is 71% bullish
- Pending orders in the 1000-pip range are set to buy in 63% of all cases
- US GDP might impact gold prices
On Friday, the third attempt to reach above the 1,240 level was stopped by the resistance of a large scale ascending pattern. Meanwhile, the markets were expecting the US GDP announcement at 12:30 GMT.
Latest Fundamental Event
Oil prices increased volatility during the release of the US Crude Oil Inventories at 14:30 GMT. Initially, the price dropped by nearly 20 base points. However, immediately buy orders of the retail sector went through and pushed the price higher by 44 base points.
The Energy Information Administration released the US Crude Inventories data that came out lower-than-expected of 6.7M, compare to forecasted 3.6M.
"The report is mixed due to the dueling large build in crude oil inventories and steep decline in gasoline and distillate fuels," said John Kilduff, a partner at Again Capital Management in New York.
US GDP coming in at 12:30 GMT
There is one data release left this week, which might impact the financial markets through the strength of the US Dollar.
The US Advance GDP will be published at 12:30 GMT. The data release will be covered by Dukascopy Analytics on the bank's webinar platform.
XAU/USD short term forecast
In regards to the near-term future, most likely, the gold will trade sideways to stay at the 1,234.00 level. The 55-hour SMA should support the gold during the day.
However, the US Dollar could appreciate against the yellow metal during today's US Advance GDP q/q data release at 12:30 GMT. The fundamental news could force the gold to pass the SMAs to trade at the 1,228.00 level.
Hourly Chart
On the daily chart it can be observed that the long term ascending channel is holding.
In addition, note that the 100-day simple moving average, which was pressuring the commodity price lower during the last week, has been left below the price.
Daily Chart
Long sentiment remains unchanged
On Friday, 71% of trader open positions remained long. The sentiment had not changed since Thursday.
Meanwhile, trader set up pending orders are still mostly set up to buy more gold. 73% of all orders are set to buy.
Some traders took profit from the second attempt to reach above the 1,240.00 mark on Thursday. Meanwhile, note that traders still intend to buy even more gold.