- Market sentiment is 54% bullish
- 51% of pending orders in 1000-pip range are set to BUY Gold
- US Durable Goods Orders at 12:30 GMT
The yellow metal has finally succeeded in breaking above the 1,300 mark. Moreover, the move above the notable mark occurred in a large candle, which propelled the commodity price above the 1,305 level.
The Census Bureau released two data sets simultaneously, where Residential Building Permits for the month of April came out in line with a forecast of 1.35M, moreover, the same number was released in the previous period.
The US Dollar's slight weakening may be affected due to the lower-than-expected Housing Starts data of 1.29M, compared to the forecast of 1.32M.
A US Release has come
The whole week has been empty for US data releases. However, at 12:20 GMT the Dukascopy Analytics team will begin the cover of the US Durable Goods release.
The data is set to be released at 12:30 GMT. Moreover, the event will occur during the middle of Friday's Analytics webinar that will begin at 12:00 GMT.
Gold stable after surge
As previously expected, the 200-hour SMA and the upper boundary of the short-term wedge surrendered mid-Thursday, driven by strong two-hour surge until the 1,305.00 mark. Further advance did not follow, as the pair was restricted by the 200-day and 100-period (4H) SMAs.
Meanwhile, the Asian session started with slight weakening, as bulls lacked the necessary momentum to dash through the aforementioned moving averages. Thus, it is likely that this bullish sentiment allays in this session, thus resulting in a test of the 55-, 100– and 200-hour SMAs near 1,294.00/1,298.00. This area is expected to hold firm.
In terms of the upside potential, Gold should reach the 1,310.00 area where the upper boundary of a seven-week channel is located.
Hourly Chart
As it was expected by watching the daily chart, the 1,300 mark did provide resistance. However, there is a more notable important fact on the daily chart.
Namely, the 200-day SMA stopped the surge, which followed the breaking of the 1,300 cluster. Moreover, the 1,300 cluster began to provide support on Friday. If the 200-day SMA at 1,307.50 would get passed, the 1,315 level would be targeted next.
Daily Chart
Swiss market sentiment is almost neutral
SWFX market sentiment remains unchanged and bullish with 54% of traders holding long positions in this session.
Meanwhile, pending commands are set to buy the yellow metal in 52% of all cases. This indicates that the large selling of the metal, which was set to occur previously, has been either cancelled or done by some, as they were taking profit.
OANDA traders remain bullish, as 69% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 67% long positions.