- SWFX traders are neutral
- 64% of pending commands are to buy the metal
- The bullion opened at 1,244.16
- Upcoming Events: FOMC Member Evans's Speech; US Core Durable Goods Orders; US Durable Goods Orders
The number of Americans filing for unemployment benefits rose more than expected last week, hitting the highest level over the past seven weeks, official figures revealed on Thursday. The US Department of Labour reported initial jobless claims rose by 15,000 to a total of 258,000 in the week ended March 17, up from the preceding week's upwardly revised reading of 243,000. In the meantime, market analysts expected unemployment claims to hit 240,000 during the reported week. Nevertheless, even despite the uptick in last week's claims, US labour market remained solid, with employers being slow to dismiss workers, as it becomes rather difficult to fill vacancies with experienced employees.
The February figure marked the 80th consecutive week of claims below 300,000, which is widely considered as a healthy jobs market. Apart from that, Thursday's report also featured yearly alterations for previously reported initial and continuing claims, with the latter benchmark dropping 39,000 to settle at 2M over the week ended March 10, while the unemployment rate among those eligible for jobless benefits managed to decline to 1.4% from the 1.5% reading registered previously.
Upcoming events: Evans speaks and Durable Goods Orders
This week will end with two minor events in the US, that are unlikely set to influence the financial markets not more than by causing minor volatility. First of all FOMC member Evans will give a speech at 12:00 GMT. Secondly, at 12:30 GMT the US Durable Goods Orders and Core Durable Goods Orders data will be published. This data release will be covered on the online webinar by the Dukascopy research team.
Gold fluctuates near 1,245 mark
Daily chart: The yellow metal traders are expecting the fundamentally important vote on US healthcare, which will reveal, whether Donald Trump can get legislation passed. Due to that reason the bullion bounced around the 1,245 mark on Friday morning. From a technical perspective the commodity price is squeezed in between the weekly R1 at 1,242.38 and the 50.00% Fibonacci retracement level at 1,248.96, which is enforced by the long term downward trend line at 1,250.12. Due to this trend line it can be assumed that the legislative bill will not be passed. However, it might as well be easily broken, and market participants should stay vigilant.Daily chart
Hourly chart: The hourly chart reveals that the bullion is actually struggling to hold its ground, as it is the weekly R1, which is keeping it from falling lower. In the meantime, the 20-hour SMA is approaching from the upside and keeps pushing the metal lower. However, most recently the 100-hour SMA moved in from the downside and began to provide support. These factors combined just enforce the squeeze of the commodity price.
Hourly chart
SWFX traders once more neutral
OANDA Gold traders have decreased their bullish outlook, as open positions are 59.20% long on Friday, compared to 61.29% previously. However, traders of SAXO bank have not changed their opinion, as 57.38% of open positions are long, compared to 57.81% on Thursday.