- SWFX traders are 55% bullish
- 57% of pending orders in 500-pip range are set to BUY the gold
- Gold price remains near 1,268.00
- Upcoming Events: US CB Consumer Confidence and Pending Home Sales
In result of the previous trading session the bullion gained 0.7% against the buck. As pair approached the upper edge of a dominant four-month long channel, a rebound is expected to happen.
The US economy expanded at its strongest pace in two years in the Q3, fuelled by solid business spending.The Commerce Department stated that the country’s gross domestic product rose at a 3.2% yearly rate in the Q3, missing expectations for a 3.3% growth. Moreover, the US Congress approved tax cuts are set to encourage economic growth, though the risk of overheating is likely to occur with fiscal stimulus coming simultaneously with reaching the level of full employment.
The only event that is worth following this week will happen at 15:00 GMT when the Conference Board will publish information on sentiment of American consumers.
XAU/USD tests dominant channel down
In result of the surge that was triggered by two disappointing macroeconomic data releases as well as the rising 55- and 100-hour SMAs the price of yellow metal ended up at the 1,273.00 mark. The further advance seems unlikely, as the exchange rate faces resistance formed by the monthly PP and the upper trend-line of a four-month long dominant descending channel that supposedly started to transform into rising wedge formation. However, the overall market sentiment as well as allocation of pending orders suggest that rise of the bullion might continue. In case the pair crosses the above barriers, it will be free to climb up to the 1,287.15 level, which represents location of the 100-day SMA.
Hourly Chart
In result of the Friday’s surge, the exchange rate approached the upper boundary of a four-month long channel down that supposedly started to transform into the falling wedge formation. Accordingly, the rate is expected to make a rebound and start moving in the opposite direction towards the 200-hour SMA.
Daily Chart
