© Dukascopy Bank SA
"Amazingly, people are paying Switzerland to warehouse their money for 10 years...That makes gold a high-yielder, because it yields zero. So you're in a world that is being incrementally favorable for gold."
- a bond trader at Doubleline Capital (based on MarketWatch)
Pair's Outlook
On Wednesday, the precious metal traded mostly in the narrow range between monthly R2 and 61.8% Fibo around $1,285, while the latter level limited any gains proposed by bulls. However, in the night between Wednesday and Thursday the gold fell even below the monthly R2. The closest support for XAU/USD is strengthened by down-trend and weekly S1 which are unlikely to give up easily. Therefore, even despite bullish technical indicators and positive market sentiment, the metal will most probably stay range bound for some period of time in the nearest future.
Traders' Sentiment
Sentiment towards the precious metal is remaining strongly positive among SWFX traders, as share of bullish trades is currently staying at 73%, down slightly from the time our last report was published yesterday.
© Dukascopy Bank SA