- SWFX traders are 52% bearish
- 64% of pending commands are to buy the bullion
- The metal's price started the day's trading at 1,243.47
- Upcoming Events: US Building Permits
The Bullion has met with various resistance levels, which have pressured it into a decline on Wednesday morning. Most likely the decline will continue until the bullion finds support.
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 Building Permits
A data package from the US side will be released at 12:30 GMT. At that time the US Building Permits number will be out. It will be accompanied by the US Housing Starts data. However, historically these data sets have shown only medium impact on the markets, which is not large enough for swing traders to be interest into.
XAU/USD extends gains
The yellow metal broke the resistance line, which was discovered on Tuesday. Due to that reason it can be assumed that, as the bullion forms and reveals the new medium term trend, various short term levels of significance are likely going to become obsolete in the matter of hours. However, the basic hypothesis remains the same. The commodity price is set to surge in the upcoming weeks. In regards to the next few trading sessions, it could be observed on Wednesday morning that the bullion had bounced off a short term resistance line and began a retreat. Although, the commodity price was about to be supported by the 55-hour SMA, which as approaching the bullion from the downside just above the 1,235 mark.
Hourly Chart
On the daily timeframe it can be observed that the 55 and 100-day SMAs might have been the ones, who stopped the surge of the metal on Tuesday. In the meantime, the metal's price is being supported by the 200-day SMA, which is located at the 1,230 mark.Daily Chart
SWFX traders have shifted
Traders of Dukascopy have are no longer neutral bullish, as 52% of traders are short, compared to 51% bullish positions previously. However, 64% of trader set up orders are to buy the metal.
OANDA Gold traders remain with a bullish outlook, as open positions are 74.06% long on Wednesday. In the meantime, SAXO bank sentiment is 62.62% bullish.
Spreads (avg, pip) / Trading volume / Volatility
Market participants foresee the price of gold being near 1,350 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 1,350 in October. Generally, 54% (+5%) of participants believe the price will be above 1,300 in ninety days.