- Market sentiment remains 53% bullish
- 58% of pending orders in 1000-pip range are set to BUY Gold
- Minor US data releases
The XAU/USD commodity price continues to trade in a narrow channel since May 31.
The Bureau of Economic Analysis released Preliminary Gross Domestic Product data that came out lower-than-expected of 2.2%, compared to the 2.5% in the previous period.
"The revision to headline GDP growth was small, as were most of the revisions to GDP components. The standouts were weaker inventory investment, weaker residential investment and stronger business investment," said Chris Low of FTN Financial Group.
No Major US fundamental releases today
After the busy Friday's session, the economic calendar is almost empty. However, for any financial instrument, which involves the US Dollar is totally empty.
Gold continues to trade in narrow range
The yellow metal was stranded in a narrow range between the 55-, 100– and 200-hour SMAs early on Friday. The bearish sentiment eventually took over the market as a result of which Gold breached the long-term moving average and subsequently fell down to the 1,290.00.
Technical indicators on the 1H and 4H time-frames demonstrate that there is still some downside potential that could be realised today. The nearest support is the 61.80% Fibonacci retracement and the lower boundary of a 1,5-year ascending channel at 1.285.00.
It is likely that bears still try to reach this level today prior to reversing to the upside and re-testing the 55-, 100– and 200-hour SMAs at 1,300.00 later in the week.
Hourly Chart
The XAU/USD commodity price has maintained it senior descending channel since April 10. The pair has tested the upper boundary for the second time on May 31, and this may signal a new wave of decline.
Daily Chart
Swiss traders remain bullish
On Monday, 53% of open Swiss Foreign Exchange XAU/USD positions were bullish.
Meanwhile, trader set up orders are bullish with 54% of them being set to buy the GOLD.
OANDA traders remain largely bullish, as 68% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 71% remains long positions.