- 52% of all SWFX open positions are long
- 61% of pending commands were to buy the metal
- The bullion opened at 1,209.25
- Upcoming Events: EU Membership Court Ruling for the UK
US homebuilding activity advanced more than expected in the last month of 2016, official figures revealed on Thursday. The Commerce Department reported housing starts rose 11.3% to a seasonally adjusted annual pace of 1.23 million in December, following the previous month's upwardly revised 1.10 million units and surpassing analysts' expectations for a 1.19 million-unit rate. The December increase suggested the housing market boosted economic growth in the Q4. Meanwhile, building permits came in at a seasonally adjusted annual pace of 1.21 million units in the same month, unchanged from November's upwardly revised reading, slightly missing economists' projections of a 1.22 million-unit rate.
Separately, the Philadelphia Federal Reserve said its Manufacturing Index jumped to 23.6 points in January, the highest level in more than two years, driven by a rise in new orders, which climbed to 26.0 from 14.90. Analysts anticipated a sharp fall to 16.2 points in January from the prior month's 21.5. Data also showed the Employment Index surged to 12.8 from 3.6, while the Business Outlook Index for the next six months hit its highest level since August 2014 of 56.6 points. Other data released on Thursday showed initial jobless claims fell 15,000 to 234,000 last week, the lowest level in more than 43 years.
Upcoming fundamental events: EU membership court ruling
The yellow metals price is set to be shaken by the UK EU Membership Court Ruling set to be released at 9:30 GMT on Tuesday. Until then the only thing, which could slightly push the commodity price any direction, is Mario Draghi's speech at 11:30 GMT on Monday. However, that event is unlikely to cause large fluctuations in the metal's price.
Gold surges on Monday morning
Daily chart: In the early hours of Monday's trading session the bullion surged to the 1,215 mark. The reason for that is that the yellow metal continued its Friday's surge. The metal is about to face a resistance cluster made up of the 38.20% Fibonacci retracement level at 1,219.20, monthly R2 at 1,218.96 and the weekly R1 at 1,220.32. Due to the strength of this cluster it is most unlikely that the bullion will manage to break above the 1,220 mark without a push from the fundamental side. In the meantime, the only support the yellow metal has is the weekly PP at 1,208.09.Daily chart
Hourly chart: The hourly chart reveals that the bullion scored huge gains at the start of the week until it touched the resistance cluster above it. Due to the fact that the cluster has already been touched and the commodity price is retreating from it, it is most likely that it will fall to the weekly PP. However, the weekly PP is not alone after all, as the 100-hour SMA is at 1,208.78.
Hourly chart
Trader opinion unchanged
OANDA Gold traders have maintained their optimistic outlook on the yellow metal, as open positions were 70% bullish on Monday. Meanwhile, traders of SAXO bank also remain long, regarding the yellow metal, as 63.79% of open positions are bullish.