- 59% of all SWFX open positions are long
- 60% of pending commands were to buy the metal
- Gold was not traded on Monday
- Upcoming Events: US CB Consumer Confidence; US Richmond Manufacturing Index
New orders for US-made capital goods advanced more than expected in November due to strong demand for machinery and primary metals, suggesting some of the oil-related drag on manufacturing was starting to fade. According to the Commerce Department non-defense capital goods orders excluding aircraft, a went up 0.9% after an unrevised 0.2% gain in October. Moreover, there were increases in orders for electrical equipment, appliances and components, as well as computers and electronic products. A drop in oil prices last year, together with a surge in the dollar, pressured manufacturing. Much of the impact has been through weak business spending on equipment, which has contracted for four consecutive quarters. However, with oil prices hovering above $50 per barrel, manufacturing, which accounts for 12% of the US economy, is starting to perk up. In the meantime, the US economy soared at a faster pace last quarter than previously estimated, but the stronger gains only help bring the year's growth rate back in line with the long, sluggish expansion. According to the Commerce Department the US GDP expanded at an inflation- and seasonally adjusted annual rate of 3.5% in the third quarter.
Existing home sales in the United States rose for the third consecutive month in November, surprising markets and hitting their highest level for almost a decade. According to the National Association of Realtors, home resales advanced 0.7% to an annualized rate of 5.61 million units in the reported period, following October's downwardly revised rate of 5.57 million, surpassing analysts' expectations for a slight decline of 1.0% to a 5.52 million-unit pace and reaching the highest since February 2007. On an annual basis, sales increased 15.4% in November. According to the latest data published by Freddie Mac, the fixed 30- year mortgage rate has climbed around 60% to an average rate of 4.16% since Donald Trump's victory in the US presidential election. Moreover, mortgage rates are likely to go even higher after the Fed rose its key interest rate to 0.75% from 0.50% last week as well projected three more hikes in 2017. Separately, the Energy Information Administration announced on Wednesday a 2.3 million barrel increase in US crude oil inventories during the week ending December 16, while market analysts anticipated a decline of 2.4 million barrels, following the preceding week's 2.6 million barrel slip.
CB Consumer Confidence
There are some notable data releases scheduled for Tuesday. The S&P/CS Composite- 20HPI is set to be out at 14:00 GMT. However, trader should keep their eyes open at 15:00 GMT, when the CB Consumer Confidence will be released together with the Richmond Manufacturing Index. Although, the consumer confidence index is of the utmost importance on Tuesday.
Gold surges on Tuesday
Daily chart: The yellow metal's price skyrocketed on Tuesday morning, as it jumped from 1,133.04 to trade above 1,150 by 7:45 GMT. This move occurred after a flat Monday's trading session was marked on the charts. Although, in reality the bullion did not trade during Monday's trading session. The fact that there is an empty candle is not the biggest problem for analysts. The problem is that the candle, which is forming on Tuesday in reality will represent the combined market force of two separate candles. That is suggested to be taken into account by traders.Daily chart
Hourly chart: The hourly chart is useless due to the previous trading session being marked as fully flat. All of the SMAs are almost at the same point, and they will become relevant only when the price calculation occurs from fluctuating prices. The same is relevant to the Bollinger bands, which only now have started to disperse. Remember that the Bollinger bands are measured via using the last 20 candles.
Hourly chart
SWFX sentiment remains bullish
OANDA Gold traders remain optimistic regarding the Bullion, as open positions were 80% long. Meanwhile, traders of SAXO bank seem to have majorly decreased their bullish stance, as Tuesday showed 63.35% of traders betting the metal will surge, compared to 71.72% during the previous session.