- Market sentiment remain 57% bearish
- 63% of pending orders in 1000-pip range are set to BUY gold
- The Yellow metal has managed to regain ground
The bullion almost touched the 1,350 mark in the last 24 hours. However, Just as it reached above the pivot point, which provides resistance just below the notable level, the commodity price began a decline.
The Bureau of Labour Statistics revealed lower-than-expected data in Consumer Price Index in March. On month-to-month basis CPI showed its first decrease in 10 months by 0.1%, compared to a growth of 0.2% in the prior month.
However, economists had forecast it to stay unchanged; the drop was caused by the decline in gasoline costs. Moreover, rising prices for rental accommodation and healthcare continued to put pressure on underlying inflation.
US Retail Sales already on Monday
Although we will have our research webinar at 12:00 GMT, during which we should review and pick out the week's data releases to cover, there is something set to occur today.
Namely, the US Retail Sales data sets will be published at 12:30 GMT. The release is considered high impact and will be covered by our analytics team. The release will be a part of the Dukascopy Monday's research webinar, during which the rest of the week will also be looked at.
XAU/USD could re-test senior channel
XAU/USD did not introduce massive changes to its positioning during the previous session, as its movement was stranded by the 55-, 100– and 200-hour SMAs.
By Monday morning, the pair had already surpassed all this levels and was seemingly set for a surge. The nearest resistance is the monthly R1 and the senior channel at 1,354.00 and 1,360.00, respectively. In case the pair is driven by strong upside momentum, the yellow metal should not edge above the 2017/2018 high of 1,366.17.
By and large, Gold has diminished its trading range in a seven-week ascending channel. This might be an early indication of a breakout south. This bearish movement also corresponds with the senior channel.
In terms of today, Gold should not fall below the 1,330.00 mark.
Hourly Chart
The daily chart of the metal shows that the commodity price has been step by step declining. It has been booking lower high levels with each closing session. However, today is the exception, as the commodity price has bounced off the support of the 23.60% Fibonacci retracement level near the 1,335.00 mark.
Daily Chart
Markets remain bearish
SWFX market sentiment had a slightly decreased bearishness, as on 57% of traders were short. Meanwhile, pending commands were set to buy the metal in 55% of all cases.
OANDA traders remained bullish sentiment, as 54% of open positions were long. However, Saxo bank traders are 51% short.