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"We're in this narrow band somewhere between $1,200 and $1,250. The market is really looking for guidance here."
- GoldMoney (based on Economic Times)
Pair's Outlook
Yellow metal acted decisively on Monday and provided the price with a robust enough increase, in order to close back above the vital 55-day SMA. Therefore, for now the bearish case became a temporarily solved issue. XAU/USD should be additionally backed by the March-April uptrend near 1,233.40, but any closure under here is going to expose the weekly S1/Bollinger band at 1,216. We are not ruling out a sell off as gold will be pressed down by the primary resistance - the monthly and weekly pivot points at 1,241/43.
Traders' Sentiment
60% of the SWFX market assumes the gold is going to be a subject to losses in the foreseeable future, as this is the percentage of short positions opened at the moment. The bulls are holding a deep minority (40%) of all transactions, notwithstanding the fact that they have gained four pp since yesterday.
© Dukascopy Bank SA