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"There is a little bit of safe haven buying. But there are concerns about (U.S.) interest rate hikes. That tug of war is keeping prices in range."
- Lee Cheong Gold Dealers (based on CNBC)
Pair's Outlook
Price lows of April 14-15 were touching the 55-day SMA, but the bears were far from being successful to close XAU/USD below this vital support line. On Friday gold commenced a recovery up to 1,234 and the rally continues taking place on the April 18 morning. We see short-term gains being contained by the 1,239/41 area where both weekly and monthly pivots rest at the moment. Nonetheless, medium-term risks remains skewed to the upside because of the upward-sloping 55-day SMA. Bullish case is also indicated by the daily and weekly technical indicators.
Traders' Sentiment
Over the weekend the bullish side has advanced beyond 40% to reach the 41% mark on Monday. This is up from 39% we had observed back on April 15.
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