- SWFX traders are 54% bullish
- 55% of pending commands are to buy the metal
- The bullion opened at 1,226.86
- Upcoming Events: US CPI; US Core CPI; US Retail Sales; US Core Retails Sales; Janet Yellen Testifies
In the meantime, the so-called core PPI, which excludes volatile items, jumped 0.4% month-over-month in January, compared with analysts' expectations for an unchanged reading of 0.2%. Year-over-year, core producer prices grew 1.6% last month, following December's gain of 1.7% and providing support for the view that the Federal Reserve could raise rates in the upcoming months as promised. Back in December, the Central bank raised its overnight rate to a range of 0.50-0.75% and projected three more rate hikes in 2017. The Federal Reserve Chair Janet Yellen said on Tuesday that the Bank would probably increase rates already at its next policy meeting in March. Following Janet Yellen's comments, the US Dollar hit its three-week high against a basket of currencies, while US government bonds dropped markedly.
In the meantime, the so-called core PPI, which excludes volatile items, jumped 0.4% month-over-month in January, compared with analysts' expectations for an unchanged reading of 0.2%. Year-over-year, core producer prices grew 1.6% last month, following December's gain of 1.7% and providing support for the view that the Federal Reserve could raise rates in the upcoming months as promised. Back in December, the Central bank raised its overnight rate to a range of 0.50-0.75% and projected three more rate hikes in 2017. The Federal Reserve Chair Janet Yellen said on Tuesday that the Bank would probably increase rates already at its next policy meeting in March. Following Janet Yellen's comments, the US Dollar hit its three-week high against a basket of currencies, while US government bonds dropped markedly.
Upcoming events: CPI, Retail Sales and Yellen continues to testify
It is the second day of Janet Yellen, chairwoman of the Fed, testifying to the US Congress. That is set to cause the most fluctuations, as the chair of the Federal Reserve is set to give fundamental information regarding US monetary policy. She will begin to testify at 15:00 GMT. However, before that there will be other data releases, which might influence the markets. Particularly, at 13:30 GMT, a package of US fundamental data will be out. The package will consist of US CPI, Core CPI; Retail Sales and Core Retail Sales.
Gold remains near 1,220 level
Daily chart: The yellow metal remained near the 1,220 mark on Wednesday morning. The reason for that is that the markets have still not decided upon the future direction of the commodity price. In the meantime, from a technical perspective all of the bullion's recent moves have been dictated by two levels of significance on the daily chart. From the upside the metal is kept lower by the weekly PP at 1,232.24, and from the downside the bullion is finding support in the first weekly support at 1,219.77 combined with the 38.20% Fibonacci retracement level at 1,219.20.Daily chart
Hourly chart: The hourly chart reveals that the yellow metal experienced huge volatility during the last 24 hours. Especially the time during chairwoman of the Fed, Janet Yellen, gave testimony before the Congress. However, the commodity price has returned to the previous levels, and its movements will be once more possible to analyze technically, as soon as more candles are created.
Hourly chart
SWFX traders remain bullish
OANDA Gold traders have a bullish outlook on the yellow metal, as open positions were 63% bullish on Wednesday. Meanwhile, traders of SAXO bank have increased their bullish outlook, regarding the yellow metal, as 63.84% of open positions are bullish, compared to 60.02% yesterday.