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"I would not be surprised to see all-time highs in this next leg of the precious-metals cycle."
- Tocqueville Gold Fund (based on MarketWatch)
Pair's Outlook
The bullion booked a tremendous rally on Thursday, as a very decisive bullish action managed to close the daily trading above the most important resistance of 1,258/63 represented by the weekly R1 and February high. Boosted by weaker US Dollar, gold is now fluctuating at peak levels since mid-March. We give a quite uplifted likelihood to a testing of the March high at 1,284.53, which is backed by the weekly R2 at 1,286. While technical indicators on daily/weekly time frames are strongly positive, we would not rule out a mid-term spike towards the channel's trend-line and 2015 high at 1,307.
Traders' Sentiment
Sentiment of the SWFX market tanked over the past 24 hours, as various bullish transactions were forced to close amid large-scaled profit-taking. There are only 36% of long open positions this Friday morning, down from 42% yesterday.
© Dukascopy Bank SA