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"Gold market participants appear to put more weight on the strength of the US economic data and what that will mean for the Fed's rate decisions."
- Commerzbank (based on Sky News)
Pair's Outlook
Yellow metal hovered predominantly in the red territory on Monday, but the bears were only capable of pushing the price down to the 1,215 mark and not any below it. Even though we are seeing bullish pressure on early Tuesday, the rally is expected to be contained by a dense resistance cluster between 1,224 and 1,230. Up there, we have got the weekly pivot point, the 23.6% Fibonacci retracement of Dec-Mar uptrend and the 20-day SMA. The base scenario suspects a correction lower from here, but in case the bulls overcome this supply, the next immediate target will become the 1,241 mark represented by the monthly pivot point and the weekly R1.
Traders' Sentiment
About 54% of all transactions in the SWFX market keep betting that the precious metal will lose value in the foreseeable future. This is down from the 55% share that the bears had held yesterday morning.
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