- SWFX traders are 51% bullish
- 62% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,234.19
- Upcoming Events: US Import Prices
A recently adjusted line on the hourly chart of the yellow metal is creating a notable resistance for the commodity price. It is possible that a short term decline is in the making. However, in the medium term a surge is still to be expected.
Consumer prices in the United States were flat, while retail sales dropped for the second consecutive month in June. The Labour Department reported on Friday that its CPI registered an unchanged reading in the observed month, missing market expectations for a 0.1% rise, as the cost of mobile services and gasoline declining. On a yearly basis, the index surged 1.6% in June, continuing to ease from February's 2.7%, when it showed the strongest gain in five years.
US Import Prices
There is only one data release scheduled for Tuesday, which might influence the financial markets form the side of the US Dollar. The US Import Prices information will be released at 12:30 GMT. However, as this data release has not historically caused notable volatility, it will not be covered by the Dukascopy research team.
XAU/USD faces resistance line
The upper trend line of the adjusted small scale ascending channel pattern is providing resistance to the commodity price. However, it has to be noted that the trend lines drawn on the yellow metal's charts have to be taken into account as indicators of where the zones of significance are located at. Meanwhile, it is highly likely that the yellow metal will soon begin a retreat down to the lower trend line of the channel up pattern. The bullion's price is most likely going to attempt to find support in the 55-hour SMA, which on Tuesday morning was located just below the 1,230 mark. In the meantime, the lower trend line of the ascending channel was supported by the 100-hour SMA near the 1,225 mark.
Hourly Chart
The daily chart shows that the upper trend line of a previously active descending channel pattern has been broken. It can be observed that the commodity price might surge to the levels above the 1,250 mark in the upcoming weeks.Daily Chart
SWFX traders are neutral/bullish
Traders of Dukascopy have are neutral bullish, as 51% of traders are bullish. However, 62% of trader set up orders are to buy the metal.
OANDA Gold traders remain with a bullish outlook, as open positions are 77.75% long on Tuesday. In the meantime, SAXO bank sentiment is 62.06% bullish.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being above 1,300 in three months
Traders who were asked regarding their longer-term views on gold during the last month expect, on average, to see the metal around 1,300 in October. Generally, 49% of participants believe the price will be above 1,300 in ninety days.