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"We see no compelling reason for more than a normal retracement before bullion resumes an upward move. The rally is underpinned by risk-off sentiment, a weaker dollar and a shift in global monetary policy."
- HSBC (based on CNBC)
Pair's Outlook
Yellow metal remains increasingly buoyant for the moment, given global economic uncertainty and expectations that the Fed will keep interest rates low. Yesterday gold eroded the monthly R1/weekly R2/downtrend at 1,143/47 and was only limited by the Sep 2015 high at 1,156. However, possibly poor US jobs data might be another bullish signal for bullion traders and the key focus will then shift to even higher levels in the area of 1,162/64 (weekly R3; May-Oct 2015 downtrend), followed by the second monthly resistance and Aug 2015 high at 1,168/70.
Traders' Sentiment
SWFX market sentiment has been steady since our latest report on this precious metal. Somewhat around 53% of all traders are holding long open positions, but it seems to be a quite unstable and fragile majority.
© Dukascopy Bank SA