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– Reuters
Pair's Outlook
Gold extended its weakness on Monday morning following a break below the hourly channel on Thursday. Currently floating around the 1,208.00 mark, the commodity could extend the losses to 1200,77 but is unlikely to slip below. A daily surge is also not out of the picture, as the pair could retrace from the broken trend-line around 1221,80. This is also consistent with the rate being on the fifth wave in the hourly chart. In the unlikely case of a break below the 1200,00 mark, which is strengthened by May lows, the risk will shift to 1193,54 and 1184,24 after that.
Traders' Sentiment
Traders remain slightly bullish, as 54% of open positions were long on Thursday. As optimistic sentiment continues to rise on gold (up from 53%), traders confirm the trend placing 56% of pending orders long.
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