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"Volatility in European currency markets encouraged further gold safe-haven demand."
- ANZ (based on CNBC)
Pair's Outlook
On Friday, XAU/USD cross surged noticeably for a second consecutive day in a row, as the price of metal added around $20 per ounce to approach monthly R2 and close the trading session at $1,280. This level, however, is strengthened by the Bollinger band and 61.8% Fibonacci retracement around $1,290, which may calm down bulls' intentions to push Gold further to the upside. Despite bullish short and medium-term technical indicators, we see the yellow metal undergoing through the period of correction at least on a daily basis.
Traders' Sentiment
Distribution between opened positions for buying and selling Gold is still remaining rather positive and in favor of former, as bulls have a majority with 64% of all trades, a further drop of 4% over the weekend. As a result, share of bulls plummeted to the lowest level in 24 working days.
© Dukascopy Bank SA