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"Increased liquidity in the euro-region is set to boost the prices of gold, as the precious metal may enjoy fund inflows from hot money coursing through Europe."
- Phillip Futures (based on CNBC)
Pair's Outlook
It seems that at the moment the yellow metal is remaining under a strong support from the monthly R2 and 61.8% Fibonacci retracement around $1,285. The most recent bearish attempt failed to push gold downwards. At the same time, yesterday the previous metal has also tried to breach the closest important resistance at $1,302 represented by the weekly R1, but had to return back below the round level. Still, daily and weekly technical indicators continue giving signals to buy the bullion; therefore, soon we may see a renewal of the bullish trend.
Traders' Sentiment
Distribution between opened positions for buying and selling the precious metal is still remaining positive and in favor of former, while bullish advantage over bears added one more percentage point to 62% since Wednesday. However, it still stays below 64% seen in the beginning of the week.
© Dukascopy Bank SA