- SWFX traders are 50% bullish
- 94% of pending orders in 500-pip range are set to BUY the gold
- Gold prices have paused the surge
- ISM Manufacturing PMI and FOMC Meeting Minutes
After reaching above the 1,320 mark the yellow metal began a decline. Although, the decline seems more like a short term consolidation than a change of direction. In addition, some technical clues confirm the hypothesis of a soon to occur resumption of the surge.
Market News International stated that its PMI of manufacturing sector in Chicago jumped to 67.6 in December, after 63.9 reading in the previous month. The survey also showed that businesses were shoring the stock level to support lead times and prepare for next year's product launches. However, the employment rate decreased, but remained higher than in post-crisis times.
Minor release and the Fed
The fundamental events of the week start becoming notable this week on Wednesday. First of all at 15:00 GMT the ISM Manufacturing PMI will be published. Secondly, but more importantly the FOMC Meeting Minutes will be made public at 19:00 GMT.
XAU/USD retreats after reaching above 1,320
During the early hours of Wednesday's trading session the yellow metal's price began a slight decline. The decline started after the metal reached above the 1,320 mark and setting a new record. All in all, the decline was expected, because such a record surge had only a slight chance of continuing. Meanwhile, there are various signs that the surge of the commodity price will increase after a period of consolidation. The base for that from a technical perspective would be the combined support of a junior channel up pattern and the 55-hour simple moving average.
Hourly Chart
The daily chart reveals that the bullion stopped its surge after eight consecutive trading sessions. However, the pair does not face any resistance on the daily chart as high as the 1,328.33 level. Due to that reason there are to be expected more gains also from the daily chart perspective.
Daily Chart
Markets sentiment is neutral
SWFX market sentiment is neutral on Gold, as 50% of open positions are neutral. Meanwhile, a fascinating 94% of pending commands are to buy the commodity (+44%).
OANDA traders are bearish, as 56% of open positions are short, compared to 53% long positions on the previous trading day. In the meantime, SAXO bank traders are 55% bullish, as their open positions are no longer near the equalibrium