- SWFX traders are neutral
- 55% of pending commands are to buy the metal
- The bullion opened at 1,254.14
- Upcoming Events: Chairwoman's of the Federal Reserve Speech
US private companies created less positions than expected last month; however, a fall in the jobless rate suggested that the labour market remained on a strong footing. The Labour Department reported on Friday that nonfarm payrolls rose 98,000 in March, compared to the previous month's downwardly revised gain of 219,000. Meanwhile, analysts expected the economy to add 174,000 new jobs during the reported period. According to economists, nonfarm employments was hit by the weather-related effects of the big storm that hit the Northeast and Midwest. Meanwhile, the unemployment rate fell to 4.5%, the lowest since May 2007, from 4.7% in February, while analysts anticipated an unchanged reading.
In order to keep up with growth in the US working age population, the economy needs to create at least 75,000 jobs each month. Job growth averaged 178,000 per month in the Q1 of 2017, suggesting that an expected 1.0% GDP rise for the Q1 could be temporary. Average hourly earnings advanced 0.2% in March, after climbing 0.3% in the prior month. Back in March, the Fed raised rates for the first time this year and promised two more hikes in 2017. With the economy expected to bounce back in the second quarter, analysts pegged June for the next rate hike.
Upcoming events: Janet Yellen
The calendar is almost empty for the day, as only one event is notable enough to be mentioned. However, the event is the most important one, which could occur, as at 20:10 GMT Janet Yellen is set to give a speech. Most likely she will give clues regarding US monetary policy and cause fluctuations in the value of the US Dollar and subsequently the rest of the financial markets.
Gold retreats to previous levels
Daily chart: The yellow metal's price has returned back to the levels just above the 1,250 mark. The jump witnessed on Friday receded, as the financial markets and the world calmed down after the US missile strikes in Syria. On Monday the bullion was squeezed in between the resistance of the 200-day SMA and the weekly PP, respectively, at 1,255.17 and 1,255.99 and the support, which is provided by the 50.00% Fibonacci retracement level at the 1,248.96 mark. Most likely markets will expect the today's speech of Janet Yellen regarding monetary policy before making further decisions.Daily chart
Hourly chart: A medium term ascending channel can be mapped on the hourly chart. However, as it can be observed that the upper trend line of the long term descending pattern has been touched, it is expected that the bullion's price will retreat. In that case the commodity price will attempt to find support in the 200-hour SMA at 1,252.19, which has supported the metal more than once in the recent trading sessions. Moreover, the lower trend line of the medium scale pattern is near the 1,252 level.
Hourly chart
Markets remain bullish
OANDA Gold traders have increased their bullish outlook, as open positions are 58.77% long on Monday, compared to 56.79% previously. In addition, traders of SAXO bank have also increased the percentage of long positions, as 58.46% of open positions are long, compared to 54.48% on Friday.