- 56% of all SWFX open positions are long
- 68% of pending commands were to buy the metal
- The bullion opened at 1,179.56
- Upcoming Events: US Average Hourly Earnings; US Non-Farm Employment Change; US Unemployment rate; US Trade Balance; US Factory Orders; FOMC Member Evans Speaks
The number of Americans filing for first-time unemployment benefits declined to a 8-week low, official figures revealed on Thursday. However, last week's drop in claims was almost certainly exaggerated due to the Christmas holiday. According to the US Department of Labor, national jobless claims declined 28,000, to 235,000, during the week ending December 30, reaching their lowest level since the middle of November. Meanwhile, economists anticipated a slight deceleration to 260,000 during the reported period. It was the 96th week that initial jobless claims remained below the 300,000 level, the longest streak since 1973. Firms prevented firings as the supply of workers dropped pointing to a tight and healthy labor market. In the meantime, the four-week average of initial claims dropped 5,750 to 256,570 in the past week. Nevertheless, continuing jobless claims advanced 16,000 to 2.11 million in the week ended December 24, the highest rate since September.
The job market is considered to be near or at full employment, supported by the lower unemployment rate. Back in December, rising inflation and strong labor market trends allowed the Federal Reserve to raise its key interest rate to 0.50% from 0.75%.
Upcoming fundamental releases: A data set from the US at 13:30 GMT
13:30 GMT is the time to watch the economic calendars and the Dukascopy research team's coverage of the batch of data coming from the US. To be precise, at 13:30 GMT US Average Hourly Earnings, Non-Farm Employment Change, Unemployment Rate and the US Trade Balance are set to be released. The employment data could cause volatility in the strength of the US Dollar and subsequently all its exchange rates and the commodities against which the Greenback is traded.
Gold steps back after Thursday's gains
Daily chart: The yellow metal traded below the second weekly resistance, which is located at 1,179.94, on Friday morning. Previously, on Thursday the bullion scored major gains, as it jumped and even reached the 1,184.64 mark during the day's trading session. However, at that point the first monthly resistance level is located at, which stopped the surge and forced the commodity price lower. The bounce off was consistent with the short term ascending channel, in which the metal has been since the start of January.Daily chart
Hourly chart: The hourly chart still shows a steady continuation of the metal's surge in the ascending short term pattern. Yesterday, after finding support in the 20-hour SMA, the yellow metal surged and made an attempt to break through the combined resistance of the monthly R1 at 1,184.64 and the upper trend line of the channel at 1.185.05. However, the bullion failed and retreated. Most recently the commodity price has once more reached and rebounded against the ascending channel's lower trend line to continue the surge.
Hourly chart
SWFX traders still optimistic
OANDA Gold traders remain largely optimistic regarding the Bullion, as open positions were 80% long. Meanwhile, traders of SAXO bank have not changed their bullish outlook in terms of prospects for the metal, as today showed 61.69% of traders betting the metal will surge, compared to 61.61% during the previous session.