- Market sentiment remains 54% bullish
- 55% of pending orders in 1000-pip range are set to SELL Gold
- Minor US data at 14:00 GMT
On Tuesday morning the yellow metal's price continued to trade in the range between 1,290.00 to 1,295.00 levels. However, the bullion was being approached by the 55-hour SMA, which could finally beat the price even lower.
The Institute for Supply Management released Purchasing Managers Index data that came out better-than-expected of 58.7, compared to the 57.3 in the previous period.
"The upturn has stretched supply chains to the extent that May saw the greatest lengthening of delivery times in the near-ten year history of the survey," said Chris Williamson, Chief Business Economist at IHS Markit.
US ISM Non-Manufacturing PMI
First release of the week, which might impact the US Dollar's strength and subsequently all financial instruments that involve it, is also the last one. In addition, it is not expected that an even medium increase of volatility will occur due to the macroeconomic data release.
Namely, the ISM Non-Manufacturing PMI is set to be released at 14:00 GMT. The data release will be covered on the bank's live webinar platform. The event will begin at 13:50 GMT.
Gold surrenders under bearish pressure
The yellow metal has generally maintained its position against the US Dollar during the previous two sessions. It tried to push higher early on Monday but was nevertheless stopped by the 55-, 100– and 200-hour SMAs. As a result, the pair fell back down to the 1,291.00 mark.
Technical indicators suggest that the rate might continue its movement south in this session, as well. A possible target is the 1,285.00 mark where the senior channel and the 61.80% Fibonacci retracement are located.
If looking to the upside, it is unlikely that bulls gather the necessary momentum to dash through the strong resistance of the aforementioned SMAs near 1,295.00.
Hourly Chart
The XAU/USD commodity price has maintained it senior descending channel since April 10. The pair has tested the upper boundary for the second time on May 31, and this may signal a new wave of decline.
Daily Chart
Swiss traders remain bullish
On Tuesday 54% of open Swiss Foreign Exchange XAU/USD positions were bullish. On Monday, the proportion was standing at 53%.
Meanwhile, trader set up orders are bullish with 52% of them being set to buy the GOLD. Compared to the 1000-base point range, where 55% are set to sell, it indicates that SWFX traders are taking advantage of the short term decline. However, they remain bullish in the long term.
OANDA traders remain largely bullish, as 71% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 68% of total positions being long.