- Swiss market sentiment is 55% long
- 64% of pending orders in 1000-pip range are set to BUY Gold
- US CPI at 12:30 GMT
On Tuesday morning the yellow metal's price remained below the 1,300 mark. Moreover, it has to be noted that the metal's price was stuck between the various hourly simple moving averages.
The Institute for Supply Management released Purchasing Managers Index data that came out better-than-expected of 58.7, compared to the 57.3 in the previous period.
"The upturn has stretched supply chains to the extent that May saw the greatest lengthening of delivery times in the near-ten year history of the survey," said Chris Williamson, Chief Business Economist at IHS Markit.
US Dollar will bounce around at 12:30 GMT
Tuesday is set to show data, which will influence the US Dollar and subsequently all of the financial instruments that are traded against it.
Namely, at 12:30 GMT the US CPI and Core CPI data sets will be published. The data release will be covered by the Dukascopy analysts, and the live coverage on the bank's webinar platform will begin at 12:20 GMT.
Gold still pressured by strong barriers
Gold has been trading sideways against the US Dollar for a week now. Bullish gains have been limited by the 50.00% Fibonacci retracement and the monthly PP at 1.301.00, while support is set by the lower boundary of a six-day channel up and the 100-period (4H) SMA.
Technical indicators on the 1H and 4H charts flash mixed signals, while those on the 1D time-frame point to further advance. In case the 100-period SMA is breached, it is expected that bears push the rate considerably lower, possibly down to the senior channel and the 61.80% Fibo at 1.285.00.
Meanwhile, gains are likely to be limited today, as the 1,310.00 area is restricted by the 200-day SMA.
Hourly Chart
The XAU/USD commodity price maintained it senior descending channel since April 10. The pair has tested the upper boundary for the second time on May 31 and on June 5. However, on Friday the resistance line of the pattern was broken.
It occurred not due to a move north, but actually due to the pair fluctuating horizontally just below the 1,300 mark. The mentioned symbolic level was guarded by the resistance of the weekly PP and the 50.00% Fibonacci retracement level and the mentioned pattern's resistance line.
Moreover, one could expect that, as next week the 50.00% retracement level will become the only one standing, the commodity price might surge above the 1,300 mark.
Daily Chart
Swiss traders remain bullish
During today's morning hours of the London trading session 55% of open Swiss Foreign Exchange XAU/USD positions were still bullish. It has not changed since Wednesday.
Meanwhile, trader set up orders are bullish with 62% of them being set to buy the GOLD. Previously, we observed a large proportion of sell positions in the 1000-base point range. However, that was gone on Wednesday, indicating that the short term selling has already occurred.
All in all, for the third day Dukascopy analysts noticed that retail traders were waiting for the break out to the upside to occur. First of all dominant positions were largely bullish. Secondly, open orders were showing that additional traders would open long positions, if the price breaks higher.
OANDA traders remain largely bullish, as 66% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 71% of total positions being long.