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"Gold rallied after Draghi's comment of ‘no need for further interest rate cuts'. The recent change in policy stance will support financial buying in gold."
- Australia & New Zealand Banking Group (based on Bloomberg)
Pair's Outlook
A broad buoyant sentiment pushed the precious metal to fresh 13-month highs by Friday morning. Yesterday the bullion's selloff was successfully limited by the February uptrend below 1,240, and later moderately hawkish remarks by the ECB President Draghi resulted in a surge above 1,270. For now we see the weekly R1 as the first reliable resistance for the remaining 24 hours of this week's trading, with monthly R1 at 1,295 acting as the second supply level. As daily and weekly technical indicators are mostly bullish, we assume that gradual price increases will stay in place.
Traders' Sentiment
The total percentage of bearish positions slipped to 58% from 59% about 24 hours ago, meaning our traders continue to prefer a selloff to growth.
© Dukascopy Bank SA