- SWFX market sentiment is 62% bullish
- 65% of pending orders in 1000-pip range are set to BUY Gold
- Empty days for US macro traders
On Monday, after failing to surge the bullion once more reached this year's low level near the 1,245.00 level.However, on the daily chart, the long term channel down pattern was still holding its ground.
The Bureau of Economic Analysis released quarterly Gross Domestic Product data that came out lower-than-expected of 2.0%, and was also lower than the previous period.
According to Mario Blascak, the European Chief Analyst: "The largest positive contributions to GDP stem from nonresidential fixed investment, personal consumption expenditures, and exports. The biggest drag in PCE, exports, state and local government spending, federal government spending and a downturn in residential fixed investment. "
Nothing notable until Thursday
On Monday there was minor data release, which did not affect the financial markets after all. Namely, the ISM Manufacturing PMI was released at 14:00 GMT.
Besides that data release, the economic calendars are empty in regards to the US Dollar until Thursday. On Thursday, the ISM Non-Manufacturing PMI and the ADP Non-Farm Employment Change might influence the financial markets through the strength of the US Dollar.
ADP data will be out at 12:15 GMT. ISM data will be published at 14:00 GMT. Both data releases will be covered by Dukascopy Analytics on the bank's live webinar. They will begin 10 minutes before the data is released, respectively, 12:05 GMT and 13:50 GMT.
Gold declines below 1,250 mark
On Monday morning the yellow metal traded below the 1,250.00 level. It had retreated down to that level after it had passed the support of the 55-hour simple moving average.
The metal was set to decline down to the support provided by the lower trend line of the dominant descending pattern near the 1,245.00 mark. The retreat of the price was about to be caused by the 55 and 100-hour simple moving averages, which were steadily going downwards, as they were set to provide resistance to the commodity.
Hourly Chart
On the daily chart last Thursday Dukascopy Analysts spotted a new descending channel down pattern, which has guided the metal's decline since the middle of April.
As the monthly S2 was passed, the channel's lower trend line is set to support the commodity price down until it reaches the historical low level near the 1,235.00 mark. Moreover, at that level the third monthly pivot point support level is located at.
Daily Chart
Swiss markets are massively bullish
62% open positions of SWFX market traders were long during the morning hours. The Swiss Market sentiment previously was 58% long.
Meanwhile, trader set up orders are 53% bullish, which is a decline, compared to Friday. Previously, nearly 57% of orders were to buy.
It can be deducted from the sentiment data that retail traders have opened long positions in expectations of a surge that would follow the decline.
OANDA traders are bullish on the pair with 81% of open positions are going long on the XAU/USD pair today.
At the same time, Saxo Bank traders were likewise bullish with 76% long positions.