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"To the degree that disappointing data puts off Fed rate rises, weaker data can be seen as gold-bullish."
- HSBC (based on CNBC)
Pair's Outlook
The sharpest increase in Gold's price since January 30 took place on Wednesday. The bullion gained more than $20 per ounce amid worse than expected fundamentals from the US. By beginning trading at monthly PP, the yellow metal pierced through two technical levels (20-day SMA and weekly PP) and closed just below the four-week up-trend line at 1,204. Despite that move, daily technical indicators do not give up and continue sending positive signals. However, after such strong growth, a correction seems more appropriate, but it should be capped by 1,199 (weekly PP) in the short-term.
Traders' Sentiment
Sentiment towards the precious metal is optimistic among SWFX traders as the total share of bullish positions (64%, no change since yesterday) has a strong advantage over the bearish ones at the moment.
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