- SWFX market sentiment is 75% bullish
- Pending orders in the 1000-pip range are set to sell in 72% of all cases
- US data on Friday might impact gold prices
Before reaching the 1,210.00 mark, gold prices began a surge, which on Thursday had reached above the 1,230.00 level.
Latest Fundamental Event
Oil prices increased volatility during the release of the US Crude Oil Inventories on Wednesday at 14:30 GMT. The one-minute candle gained 27 pips, or 0.41% right after the data release. In the next minutes the rate was trading at the 66.30 level.
The Energy Information Administration released the US Crude Inventories data that came out better-than-expected of 3.2M, compare to forecasted 3.6M.
Fatih Birol, the Executive Director of the International Energy Agency said: "One is high oil prices, and in many countries, they're directly related to consumer prices. The second one is global economic growth momentum slowing down".
US Employment data sets on Friday
In regards to this week note that all commodity prices might get impacted by the US Employment data set release at 12:30 GMT on Friday.
The event will be covered by Dukascopy Analytics on the bank's webinar platform. The webinar will also be streamed on YouTube.
XAU/USD short term forecast
In regards to the near-term future, most likely, gold will be retraced by the 100-hour and the 200-hour simple moving averages to push the yellow metal to trade at the 1,220.00 level during the trading session
On the other side, the gold could break the resistances of the 100-hour and the 200-hour SMA's if the US Dollar will depreciate against the yellow metal during the day.
Hourly Chart
On the daily chart note two technical levels. The 100-day simple moving average is located at the 1,220.40 level. Meanwhile, the 55-day SMA was located at 1,204.80 and was moving upwards to strengthen the technical levels near the 1,210.00 mark
Daily Chart
Long sentiment increases
On Thursday, 75% of traders were long on the yellow metal. Previously, 72% of open positions were long.
Meanwhile, trader set up pending orders are still mostly set up to buy more gold. 71% of all orders are set to buy.
As the metal surged, short term speculators have reopened their long positions and are riding the wave upwards.