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"The expectation is gold will move higher towards $1,300, however we are likely to see a profit taking driven pull back with support for such a move lower sitting around $1,250."
- MKS Group (based on CNBC)
Pair's Outlook
On Monday, gold continued to be rather well supported by the long-term downtrend line which takes its beginning point in July 2014. As a result, XAU/USD cross has put itself in the narrow range between the mentioned support and monthly R2 at $1,283. Judging from technical indicators on both daily and weekly charts, the bullion should gain enough bullish momentum from the $1,275 level to continue gaining value. On the other hand, the nearest supply area is reinforced by the 61.8% Fibo and Bollinger band around $1,295.
Traders' Sentiment
Distribution between opened positions for buying and selling Gold is still remaining rather positive and in favor of former, but bulls' majority over bears plunged even more to reach 58% this morning, compared to 64% around 24 hours ago. As a result, share of bulls plummeted to the lowest level in five weeks.
© Dukascopy Bank SA