- Market sentiment is 51% bullish
- 62% of pending orders in 1000-pip range are set to BUY Gold
- Prelim UoM Consumer Sentiment
The yellow metal strengthened against the US Dollar for the second consecutive trading session.
The Bureau of Labor Statistics released two datasets simultaneously from which Consumer Price Index came out lower-than-expected of 0.2%, compared to negative 0.1% in the previous period. Similarly, Core Consumer Price Index too came out lower-than-expected of 0.1%, compared to 0.2% in the previous month.
The Department of Labor released Unemployment Claims data at the same time, which came out better-than-expected of 211K.
Minor US data release
No major fundamental event scheduled for today that could impact the strength of the currency pairs and commodities.
XAU/USD continues to gain strength
Gold breached the four-week descending channel and the 38.50% Fibonacci retracement and allayed near 1,322.00. The upper boundary of the two-week channel was altered to the upside in order to include this latest up-move.
The pair's direction during the first part of the day should be southwards until the aforementioned SMAs are reached. Given that no significant US fundamentals are scheduled today, this area could remain intact, thus allowing the rate to resume its movement north until 1,320.00.
In case bulls prevail, gains should be capped at 1,330.00.
Hourly Chart
On the daily time-frame, technical indicators signal a strong bullish sentiment that corresponds with the ascending pattern.
Daily Chart
Swiss market sentiment remain bullish
SWFX market sentiment is bullish with 51% of traders holding long positions in this session. Meanwhile, pending commands are set to buy the yellow metal in 62% of all cases.
OANDA traders remain bullish, as 70% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 62% long positions.