- SWFX traders are 58% bearish
- 70% of pending orders in 1000-pip range are set to SELL gold
- Commodity price retraces below 1,345.00
- US GDP on Friday
Due to a speech given by Donald Trump at the World Economic Forum, the yellow metal's price fell below the 1,345 mark. There it met a support cluster, which forced the rate to resume the surge. Namely, the pair was above 1,355 on Friday morning and set to continue to surge.
US homebuilding activity decreased more than anticipated by the end of 2017 to mark its largest drop in just a year, due to a steep fall in the single-family housing units construction.
US GDP on Friday
The yellow metal's fundamental traders are mostly concerned with the events occurring in the US government. The recent events surrounding the US government shutdown have pushed the US Dollar to a three year low level, forcing the commodity price to the recent high levels.
Although, macroeconomic release swing traders should look forward to today's session. The US Advance GDP is set to be released at 13:30 GMT. This data release is most likely going to cause an increase of volatility.
The release of the data will be covered by the Dukascopy research team on the bank's live webinar platform. Just click on the notification on your trading platform at 13:20 GMT and you will join the coverage.
XAU/USD regains upside momentum
The first part of Thursday's trading session was relatively calm for Gold, as it was trading in a 1,365.00/1,353.00 range between the weekly R3 and the weekly and monthly R2s.
This slight period of consolidation was disrupted by Trump's comments on stronger US Dollar which strengthened the American currency by 0.94%.
This bearish momentum reversed in the Asian session, as the yellow metal was supported by the 100-hour SMA near 1,345.00. It is likely that the pair tries to re-located itself near the weekly R1 which is also a 2017 high.
Meanwhile, the US is to release its Advance GDP and Core Durable Goods Orders at 1330GMT. In the event of sluggish data, the pair could remain near the 200-hour SMA at 1,340.00.
Hourly Chart
On the daily chart one can observe that the fundamental events of the US are ignoring all of the technical patterns.
Namely, the upper trend line of a speculated dominant channel up pattern was broken. Due to that reason, expect the reveal of a new patterns in the upcoming trading sessions.
Daily Chart
Market sentiment on the bearish side
SWFX market sentiment is bearish on Gold, as 58% of open positions are short. However, 57% of pending commands are set to buy the commodity.
OANDA traders are bearish, as 55% of open positions are short. In the meantime, SAXO bank traders are 52% bearish.