- SWFX market sentiment is 72% bullish
- Pending orders in the 1000-pip range are set to buy in 72% of all cases
- Next US data on Friday might impact gold prices
The yellow metal on Wednesday was continuing its decline down to the 1,210.00 mark. At that level a monthly pivot point will be met by the commodity price.
Latest Fundamental Event
Last week oil prices increased volatility during the release of the US Crude Oil Inventories at 14:30 GMT. Initially, the price dropped by nearly 20 base points. However, immediately buy orders of the retail sector went through and pushed the price higher by 44 base points.
The Energy Information Administration released the US Crude Inventories data that came out lower-than-expected of 6.7M, compare to forecasted 3.6M.
"The report is mixed due to the dueling large build in crude oil inventories and steep decline in gasoline and distillate fuels," said John Kilduff, a partner at Again Capital Management in New York.
Next data only on Friday
In regards to this week note that all commodity prices might get impacted by the US Employment data set release at 12:30 GMT on Friday.
The event will be covered by Dukascopy Analytics on the bank's webinar platform. The webinar will also be streamed on YouTube.
XAU/USD short term forecast
In regards to the near-term future, the gold will keep trading downside towards the monthly R1 at 1,209.98 mark. The 55-hour simple moving average will try to catch up the rate during the trading session. Most likely, the yellow metal will meet the monthly R1 during Thursday's trading session.
Most likely, the yellow metal will meet the monthly R1 during Thursday's trading session.
Hourly Chart
On the daily chart note two technical levels. The 100-day simple moving average is located at the 1,220.40 level. Meanwhile, the 55-day SMA was located at 1,204.80 and was moving upwards to strengthen the technical levels near the 1,210.00 mark
Daily Chart
Open positions remain unchanged
Since Tuesday, 72% of traders were long on the yellow metal.
Meanwhile, trader set up pending orders are still mostly set up to buy more gold. 68% of all orders are set to buy.
It can be observed that no additional selling has occurred during the last 24 hours. It can be assumed that the 70% of Dukascopy long traders of gold are permanently or long term bullish on the metal.