© Dukascopy Bank SA
"The sharp movement in gold reflects the volatility in the U.S. dollar."
- Kotak Commodity Services Ltd. (based on Bloomberg)
Pair's Outlook
Gold rebounded for a third consecutive day on Friday and crossed a number of important resistances on its way to the north. From a third attempt, the bullion succeeded in crossing the monthly S1 at 1,173 which is accompanied by the weekly PP at 1,170. Moreover, an increase continued with a subsequent climb above 2013 low at 1,180. As a result, the precious metal has already erased around 70% of losses it was accumulating since March 5. Currently, being supported by the mentioned levels an immediate bounce-back in unlikely in the short term.
Traders' Sentiment
Sentiment towards the precious metal is optimistic among SWFX traders as the total share of bullish positions (73%, +3% since Friday) has a strong advantage over the bearish ones at the moment.
© Dukascopy Bank SA