- 58% of all SWFX open positions are long
- Trader pending commands are set up to buy the metal, namely 59% of total orders
- Gold opened Monday's session at 1,183.02
- Economic events to watch over the next 24 hours: ECB president Mario Draghi speaks
New orders for US manufactured durable goods rose markedly last month, driven by higher demand for machinery and other equipment, official figures revealed on Wednesday. Overall, new orders for capital goods jumped 4.8% in October, according to the US Department of Commerce. Meanwhile, market analysts anticipated a slight acceleration to 1.2%. The September figure was revised down from -0.1% to -0.3%. Demand for transportation equipment jumped 12% during the reported month, the largest gain since October 2015. Back in September, new orders for transportation equipment climbed 0.4%. Excluding orders tied to transportation, core durable goods orders increased 1.0%, following September's downwardly revised gain of 0.1% and surpassing the 0.2% rise market forecast. The US economy is set to expand at a 3.6% annual pace in the Q3, after growing 2.9% in the previous quarter. Separately, the Department of Labor reported on Wednesday the number of Americans filing for unemployment benefits increased to 251,000 in the week ending November 18, up from the prior week's 233,000, whereas analysts expected a milder rise to 241,000.
On Monday 21 of November ECB President Mario Draghi, during his speech has urged the European Union to stay united in the face of different challenges such as Brexit as he warned that the cohesion of Europe is being tested. Speaking in the European Parliament in Strasbourg, Mr. Draghi noted that "The euro area recovery continues to proceed at a moderate, but steady, pace. It has shown remarkable resilience to adverse developments and uncertainties emanating from the global environment." said that Europe needs to respond "cohesively and decisively" to the current challenges facing Europe. Overall, Mr. Draghi maintained a neutral tone and he is not prepared at this stage to offer strong hints over the likely policy action at December's policy meeting. There were also no attempts to steamroller the ECB Council into policy action. The stated above comments will maintain expectations that the ECB is not planning to announce some form of bond-buying extension, although the details are still in discussion. In the meantime, reaction to the speech was limited as markets remained in a consolidation phase with EUR/USD finding support just below the 1.0600 level.
Upcoming fundamentals: Mario Draghi's speech
On Monday the financial markets are set to be quiet, as there are almost no even ignorable and meaningless data releases. The only exception is the fact that at 14:00 GMT the president of the ECB, Mario Draghi, is set to testify before the European Parliament's Economic Committee in Brussels. However, it is most unlikely that Draghi will say anything unexpected, which could shook both the currency and commodity markets.
Gold remains below 1,200 on Monday
Daily chart: The yellow metal surged on Monday morning, as it managed to surge past the newly calculated pivot point and gain 1% during the move. However, as it approached the 1,200 mark it was most likely that the bullion was set to bounce off the resistance level and continue its downward path. In addition, the metal remained in the medium term descending channel patter during the recent move. Moreover, daily aggregate technical indicators forecast a fall for gold by the end of the day.Daily chart
Hourly chart: The hourly chart reveals that the yellow metal is not only being kept down by the descending channel's upper trend line, but also the 100-hour SMA is located almost right at the same level, as the resistance line. However, it can't begin a proper decline, as the newly formed weekly PP at 1,191.86 is providing support.
Hourly chart
SWFX trader sentiment remains unchanged
OANDA open long positions increased and are at 77.59%, compared to 74.62% on Friday. Meanwhile, SAXO bank traders have not changed their collective opinion, as on Monday 64.70% of traders bet the metal will surge, compared to 64.58% during the previous session.