- Market sentiment remains 56% bearish
- 57% of pending orders in 1000-pip range are set to SELL gold
- Join the webinar for data release at 12:20 GMT
The bullion remained near the previously described zone of 1,320 to 1,330 mark on Thursday. However, one of the Dukascopy Analysts spotted a junior descending channel on Thursday morning.
On Wednesday the Conference Board Inc. released better-than-expected Consumer Confidence, surpassing the forecasts of 126.0 with the number of 128.7 in April.
One of the main reasons for Greenback to rally was the high yield of the 10-year United States treasury bills, which showed notable gains during the start of the week.
Join the webinar at 12:20 GMT
In regards to impact to the US Dollar and subsequently all other financial instruments that are pegged to it, the end of the week will be important. On Thursday at 12:30 GMT the US Durable Goods data sets will be out.
However, the most important macroeconomic data set of the quarter will be released on Friday. Namely, the US Advance GDP will be published at 12:30 GMT.
Both the release of the Durable Goods Orders and Advance GDP will be covered by the Dukascopy analysts on the bank's live webinar platform ten minutes before the data is released.
XAU/USD returns to 55-hour SMA
The first part of Wednesday's trading session was spent under the bearish pressure, as the yellow metal lost 0.88% against the US Dollar. This fall reversed at the 1,320.00 mark—which is also the April low—and regained some lost positions just to test the 55-hour SMA on Thursday morning.
It seems that the pair is ready to breach a one-week descending channel and is moving towards the confirmation of a newly-word channel down at 1,328.70. The 100-hour SMA and the monthly PP are likewise located at this mark.
It is likely that this area forces a bearish reversal and sends the pair for another decline. The nearest support is set by the 38.20% Fibonacci retracement, while Gold could push even lower down to the 1,310.00 territory.
Hourly Chart
The daily chat shows that the commodity price continues to score new low levels. However, the 100-day SMA has approached and provided the needed support for the price to surge.
Regarding the medium term future, it is still being expected that a medium term pattern reveals itself.
Daily Chart
Dukascopy traders are shorting the metal
SWFX market sentiment remains bearish with 56% of traders holding short positions. Meanwhile, pending commands were set to sell the metal in 51% of all cases.
OANDA traders are bullish, as 59% of open positions are actually long In addition, Saxo bank traders are 59% long.