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"A repricing of Fed tightening expectations is therefore likely in the second quarter. The subsequent increase in US nominal and real interest rates could dampen investment demand and therefore gold prices."
- FastMarkets (based on The Bullion Desk)
Pair's Outlook
The bullion grabbed benefits from weaker US Dollar on Tuesday, by soaring the most in a week to close at 1,250. Backed by the 55-day SMA, currently at 1,231.56, gold surged as high as the first weekly resistance at 1,256.06, which managed to contain the upward pressure. Now the spot is located above the monthly pivot (1,241.50) and the outlook is improving. The key bullish goal is present April peak at 1,262.70, which is immediately followed by the February high at 1,263.43. Also, the bullish case is expected by the aggregate daily technical studies.
Traders' Sentiment
The rally of yesterday forced some major profit taking and the percentage of bullish SWFX traders bounced back to 40%, down from 45% a day ago.
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