Latest Fundamental Event Report
Institute for Supply Management released the US Non-Manufacturing PMI data, which came out worse-than-expected of 53.7 compared with the forecast of 55.5.
Anthony Nieves, Chair of the Institute for Supply Management (ISM) Non-Manufacturing Business Survey Committee commented: "The NMI registered 53.7 percent, which is 1.4 percentage points lower than the June reading of 55.1 percent. This represents continued growth in the non-manufacturing sector, at a slower rate. This is the index's lowest reading since August 2016, when it registered 51.8 percent. Respondents indicated ongoing concerns related to tariffs and employment resources. Comments remained mixed about business conditions and the overall economy."
Economic Calendar Analysis
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate re-tested the upper boundary of the long-term ascending channel at 1,475.00. During Tuesday's morning, the rate was trading at the 1,460.00 level.
From a theoretical point of view, it is expected, that some downside potential could prevail in the market. However, note, that gold could face the support of the 55-, 100– and 200-hour SMAs, as well the monthly R1 in the 1,420.38/1,451.78 range.
On the other hand, the price for gold could consolidate in the short term, as the exchange rate could continue to test the given upper channel line.
Hourly Chart
The daily candle chart has been replaced with the weekly candle. That is done to properly show the scale of the large pattern.
Although, note that it is too big, as it is quite rare that such large pattern exist. The largest scale trends occur during a couple of months or at the max a year.
Weekly Chart
Traders short gold
On Tuesday, on the Swiss Foreign Exchange 74% of open gold position volume was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the orders were bearish- 56% were set to sell, and 44% of orders were set to buy.