© Dukascopy Bank SA
"We think the dollar is going to be more range bound[…]. I think commodities can find a footing. They work back down and not make new lows. That would be a bullish setup for the market."
- Oppenheimer (based on CNBC)
Pair's Outlook
Bearish market participants continued to push gold prices to the downside on Thursday. At the same time, scope of the selloff is nowhere near a plunge we had observed one day prior to that. Basically, the bullion is set to hover in limbo after the commodity market returns back to trading on Monday. This is because the closest resistance lies at 1,227 (23.6% retracement of Dec-Mar uptrend) and the nearest support is the 1,205 mark (monthly PP), while Thursday trading closed somewhere is between at 1,216. Important signal: next week's technical indicators switched to a "strong buy" mode.
Traders' Sentiment
At the moment about 42% of all trades are bullish, which is still the highest level of the past seven working days. The bears are therefore keeping a 58% portion of the market.
© Dukascopy Bank SA