- 50% of all SWFX open positions are long
- Gold opened Friday's session at 1319.40
- Economic events to watch over the next 24 hours: US Core PCE Price Index; US Personal Spending; US Chicago PMI; US Revised UoM Consumer Sentiment
The number of Americans filing for unemployment benefits rose less than expected, official figures revealed on Thursday. According to the US Department of Labor, the number of claimants jumped 3,000 to a seasonally adjusted rate of 254,000 in the week ended September 24 after touching the lowest level since mid-July in the previous seven days. Meanwhile, market analysts anticipated an increase to 260,000 claims in the week ending September 24, following the preceding week's 251,000. Filings for US unemployment benefits remained below the 300,000 level for the 82nd consecutive week, the longest streak since 1973. The four week moving average of initial claims, considered a better measure of labor market trends, declined 2,250 to 256,000 last week. Furthermore, so-called continuing claims dropped 46,000 to 2.062 million in the week ended September 17. According to the final Q2 GDP print released by the Department of Commerce the US economy expanded at an inflation-adjusted 1.4% seasonally adjusted annual rate in the Q2 after growing 0.8% in the Q1. Economists expected the Q2 GDP to increase 1.3%. The US Dollar Index advanced to 95.49 from 95.42 ahead of the release.
New orders for US manufactured core durable goods dropped less than expected last month, official figures revealed on Wednesday. According to the US Department of Commerce, total new orders for durable goods were unchanged on a monthly basis in August, following the preceding month's downwardly revised gain of 3.6%, whereas market analysts expected new orders to drop 1.0% in the eight month of the year. August's flat reading was mainly driven by a 21.9% drop in demand for civilian aircraft. Excluding goods like motor vehicles and machinery, durable goods orders declined 0.4% in August, while economic desks penciled in a fall of 0.5%. The previous month's rise in core new orders was revised down to 1.3% from the originally reported 1.5%. Other data released by the Energy Information Administration on Wednesday showed crude oil inventories in the United States fell 1.9 million barrels in the week ended September 23, whereas analysts anticipated a rise of 2.4 million barrels after the preceding week's 6.2 million-barrel drop. After the release, WTI crude rose 1.1% to trade at $45.18 per barrel, whereas Brent crude advanced 1.5% to trade at $46.66 on the NYSE.
Upcoming fundamentals: Various US data
The strength of the US Dollar during the day will be dictated by various data publications, as at 12:30 GMT US Core PCE Price Index and Personal Spending data will be out and available on a monthly basis. Afterwards, at 13:45 GMT the Chicago PMI index will be released, and 15 minutes later, at 14:00 GMT, the Revised UoM Consumer Sentiment will be available.
Gold surges after finding support
Daily chart: The yellow metal surged on Friday morning, as the commodity found support by the end of Thursday's trading session. The rebound occurred when the metal approached the first weekly support at 1,315.44. After the encounter the bullion began to recoup some of that day's losses. However, it did not manage to do that, as the day's trading session was ended with losses at 1,318.78. Although, by 5:00 GMT on Friday gold had already touched the 1,324.69 level. It is most likely that the metal will continue the surge up until the level of 1,326.43, where the monthly PP is located at.Daily chart
Hourly chart: The hourly chart shows that the yellow metal's movements are dictated by the wedge's lower trend line, which provided constant support during the last 24 hours. However, most recently the 55-hour SMA came in from the upside and began providing resistance to the bullion around 17:00 GMT. Although, most recently the SMA has been broken through, and the metal has set its eyes on the monthly PP at 1,326.43.
Hourly chart
Traders remain neutral
Meanwhile, OANDA Bank clients are majorly bullish with respect to the bullion, meaning that 73.54% of all positions are long. In the meantime, SAXO bank clients show a similar trend with 63.14% of all positions being held by bulls.