- SWFX traders are 58.60% bearish
- 53% of pending orders in 1000-pip range are set to SELL
- Closest resistance level at 1,350.00
- Upcoming Events: US CB Consumer Confidence
The first of the week was very fortunate for the gold, as the gained 1.91% in value against the US Dollar. In the result of the surge, the pair broke through most of the barriers on its way, leaving only the monthly R3 at 1,359.22. It is quite possible that the bullion will continue to soar in this extensive vacuum.
The Commerce Department showed that the US Durable Goods fell 6.8% in July amid weaker demand for commercial jets, while its Core measure marked a better-than-expected gain of 0.5% in the same period.
The US Durable Goods reports on early Friday caused a modest market reaction additionally muted ahead of two economic leaders' speeches. However, while the Fed Chair Janet Yellen avoided commenting the US Central Bank's monetary policy, the Greenback weakened against the Euro by 66 pips or 0.56%.
Сonference Board's survey in focus
Today traders are advised to closely watch a release of information on the US CB Consumer Confidence that is expected to slightly decline from 121.1 to 120.9. The data release will occur at 14:00 GMT and will be covered by the Dukascopy Research Team.
XAU/USD surges above 1,316.50
During the whole previous trading day, the yellow metal was continuing to appreciate against the US Dollar. The only barrier that managed to stop the surge was a combined resistance level formed by the monthly R2 at 1,315.30 and the weekly R3 at 1,316.51.
On the one hand, today the buck should try to restore some of the lost positions. On the other hand, the bullion now has a new, solid support level, which it can use to try to reach a new target, such as the monthly R3 at 1,359.22. It should be noted that this pivot point represents the only and closest obstacle from the northern side except for the long-term channel's upper boundary near 1,350.00.
In the meantime, there is also a need to take into account an effect from escalation of the North Korea crisis and a release of data on the US CB Consumer Confidence at 14:00 GMT.
Hourly Chart
On a daily chart it is clearly seen that the pair is continuing to fluctuate in a long-term ascending channel and, at the moment, the pair is heading straight to its upper boundary. Once it reaches it near 1,350.00, a rebound is expected to follow.
Daily Chart
Markets sentiment stays bearish
Traders of Dukascopy are clearly bearish, as 58.60% of open positions are short. Accordingly, 58.60% of trader set up pending commands are to buy the metal.
OANDA Gold traders remain practically neutral, as open positions are 54% bullish. In addition, SAXO bank traders also remain close to being neutral, as 52.40% of open positions are short.