- Swiss market sentiment was 55% long on Thursday
- 58% of pending orders in 1000-pip range are set to BUY Gold
- Tutorial webinars at 12:00 and 13:00 GMT
The yellow metal remains in the previous ranges. However, there is something more notable than the price level. The 55-hour simple moving average has clearly stopped the bullion from declining in the past 24 hours more than once.
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.
Tutorial webinars instead of data releases
First release of the week, which might have impacted the US Dollar's strength on Tuesday and subsequently all financial instruments that involve it, was also the last one.
However, there are loads of other activities to fill your time today. Namely, at 12:00 GMT Dukascopy will host an introduction to JForex webinar. During that webinar one can get perfectly familiar with the bank's trading platform.
Moreover, just after that, at 13:00 GMT, Dukascopy Analytics will host an introduction to macroeconomic data release trading webinar. Note that both webinars will have hosts that will take questions during their tutoring sessions.
Gold waits for breakout
XAU/USD was trading in a narrow range on Wednesday and early on Thursday. The upper limit was set by the monthly PP, the 55-period (4H) SMA and the 50.00% Fibo retracement at 1,30.00, while the lower one—by the combination of the 55– and 100-hour and the 100-period (4H) moving averages near 1,295.00.
A breakout should occur soon. Technical indicators are in favour of the bearish scenario. This would send the pair past the bottom line of a one-month channel and down to the 1,290.00 mark.
Conversely, the yellow metal is expected to target the 1,310.00 area if its current resistance cluster is surpassed.
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 now on June 5.
Due to this trend line of the descending channel and the various resistance levels just above the 1,300.00 mark the commodity price does not seem to be likely to surge in the few upcoming trading sessions.
Daily Chart
Swiss traders remain bullish
During today's morning hours of the London trading session 55% of open Swiss Foreign Exchange XAU/USD positions were bullish. On Wednesday, the proportion was standing at 53%.
Meanwhile, trader set up orders are bullish with 59% of them being set to buy the GOLD. Previously, we observed a large proportion of sell positions in the 1000-base point range. However, that was gone on Wednesday, indicating that the short term selling has already occurred.
All in all, for the second day Dukascopy analysts noticed that retail traders were waiting for the break out to the upside to occur. First of all dominant positions were largely bullish. Secondly, open orders were showing that additional traders would open long positions, if the price breaks higher.
OANDA traders remain largely bullish, as 70% of open positions are long in this session. In addition, Saxo bank clients share the same sentiment with 68% of total positions being long.