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"In addition to constructive technicals, we see no change in our weaker dollar outlook; this in turn should continue to provide an element of support to commodities in general and to gold in particular."
- INTL FCStone (based on CNBC)
Pair's Outlook
The American Dollar has been showing weakness for the past five trading days. As a result, Gold managed to rise in price considerably. It continued to develop beyond the 200-day SMA on Friday, which now seems to act as the closest support line. In case bulls decide to drive the yellow metal further upwards, the nearest resistance will be located as far as 1,241 (weekly R1), compared with the present trading level of 1,229. In the meantime, daily technical studies support neither bulls nor bears at the moment.
Traders' Sentiment
Advantage of bulls over bears at the SWFX market is noticeable at the moment, even though the majority of positive opened trades dropped further from 63% on Friday down to 56% this morning.
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