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– Sam Laughlin, MKS PAMP Group (based on Reuters)
Pair's Outlook
The yellow metal dropped back to the 1,200 level, which had not been seen since Friday. Although, the drop itself might seem not that significant, there are other aspects that need to be taken into account. The bullion broke out of the medium term ascending channel patter, which had guided it since the middle of December. Due to that reason the channel is now obsolete. The commodity price is set to fall as low as 1,197.37, where the next notable support level is located at. At that level the weekly S1 is located at.
Traders' Sentiment
Traders are almost neutral on the metal, as 51% of open positions are long. In the meantime, 57% of trader set up orders are to buy the bullion.
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