Gold close to 1,200 mark

Note: This section contains information in English only.
Source: Dukascopy Bank SA
  • SWFX traders are neutral
  • 65% of pending commands are to buy the metal
  • The bullion opened at 1,206.91
  • Upcoming Events: US Unemployment Claims; US Import Prices
The yellow metal's price continues to decline on Thursday. However, it is highly possible that a rebound might occur soon. The reason for that is that the commodity price seems to have encountered the support provided by the lower trend line of a large scale ascending channel pattern. Moreover, on smaller scales the rate has recently already encountered minor support levels. In addition, market sentiment data indicates at bullish pressure building up.

Markets expect Friday's NFP data to show a rise of 185,000 for February, compared to the preceding month's gain of 227,000. If the actual data comes in higher than economists' estimates, it would provide additional support for Fed officials to raise rates at their meeting next week. According to market consensus, the unemployment rate slowed down to 4.7% in February from the previous month's 4.8%. Other data release on Wednesday showed US crude oil inventories rose 8.2 million in the week ended March 3, compared to the prior week's gain of 1.5 million barrels, while market analysts anticipated a climb of 1.1 million barrels during the reported week.

After the release, the US Dollar hit its intraday high of 114.54 against the Japanese Yen but failed to maintain its gains as investors awaited a speech by the Fed Chair Janet Yellen in the day

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Upcoming events: US Unemployment Claims and US Import Prices

During today's trading session there will be two minor data sets released in the US, which might affect the price of the yellow metal from the US Dollar side. Both data sets will be published at 13:30 GMT. Some market participants consider the US Unemployment Claims as even high impact and the US Import Prices as medium impact. However, history has shown that the fundamental data releases even combined have not made an impact larger than 20 base points in major currency exchange rates. Due to that reason a notable impact on Gold is also not being expected.



Gold reaches possible long term trend line

Daily chart: During the early hours of Thursday's trading session the yellow metal's price slipped even further lower, as the price reached below the 1,205 level. However, the bullion managed to find support in a speculative and before the recent moves unconfirmed long term lower trend line of a large scale ascending channel pattern. Due to that reason traders should look at whether a proper rebound occurs, as from the upside there is a strong resistance cluster, which could keep the commodity price lower in the future sessions.
Daily chart
© Dukascopy Bank SA

Hourly chart: There are various details, which can be spotted on the hourly chart. First of all there is an additional hourly descending channel, which represents the bounce off from the dominant channel's upper trend line. However, recently the minor pattern already reached the lower trend line of the larger pattern. That indicates at an upcoming surge. Second, on the hourly chart the beginning of a rebound against a possible lower trend line of a large scale ascending channel pattern can be observed more clearly.

Hourly chart
© Dukascopy Bank SA


SWFX traders are neutral

SWFX traders are neutral at the moment, as 50% of open positions are long. Although, 65% of trader set up orders are set to buy the bullion, and such a high level has not been seen for more than two months.

OANDA Gold traders have decreased their bullish outlook, as open positions are 64.34% long on Thursday, compared to 67.09% previously. In addition, traders of SAXO bank have done the same, as 68.15% of open positions are long, compared to 68.81% on Wednesday.

Spreads (avg,pip) / Trading volume / Volatility


Market participants foresee the price of Gold being at 1,300 in April

Traders who were asked regarding their longer-term views on gold between February 9 and March 9 expect, on average, to see the metal near 1,300 in April. Generally, 52% (+2%) of participants believe the price will be above 1,300 in ninety days. Alongside, 35% of those surveyed reckon the currencies will trade in the range between 1,100 and 1,300 over the next three months.

© Dukascopy Bank SA

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