XAU/USD could extend gains

Note: This section contains information in English only.
Source: Dukascopy Bank SA

During Tuesday morning, the price for gold was testing the lower boundary of the short-term ascending channel located circa 1,420.00. 

From a theoretical perspective, it is expected, that gold could reverse north and continue to appreciate against the US Dollar.

Economic Calendar Analysis at 12:00 GMT



On Thursday, the US Core Durable Goods Orders data will be published at 12:30 GMT. 

The week will end with the US Advance GDP data release on Friday at 12:30 GMT. 

XAU/USD short-term forecast

During Monday, the XAU/USD exchange rate traded sideways at the 1,426.00 mark. During Tuesday's morning, the rate was testing the lower boundary of the short-term ascending channel at 1,418.00.

From a theoretical point of view, it is expected, that a reversal south could occur within the following trading hours. However, note, that the rate has to surpass the resistance of the 55– and 100-hour SMAs, located at 1,425.04 and 1,427,91 respectively.

If the given channel does not hold, it is likely, that a breakout north could occur in the nearest future. A possible downside target is the psychological level at 1,400.00.

Hourly Chart



On the daily chart, it can be observed that the metal has pierced the resistance of the August 2013 high level at 1,434.70. The historical level was expected to provide support to the commodity price.

Daily Chart


Short sentiment remains unchanged

On Tuesday, 71% of open gold position volume on the Swiss Foreign Exchange was short.

As gold reaches new high levels, traders lose more and more by sticking to the short positions in expectations of a retracement down.

Meanwhile, in the 1000 base point range around the current metal's price the orders were bullish - 54% of orders were set to buy, and 46% were set to sell.

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