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"The reason for the recent glitter in gold is the downplay of the probability of a Fed rate hike in June. It should give gold a lift for the rest of the quarter."
- OCBC Bank (based on CNBC)
Pair's Outlook
Despite large-scaled rally of gold futures on Wednesday, the bullion is being pushed back to the downside in the early morning of Thursday. Technically, a decline below the 1,263.87 marked is unlikely, as this level is backed from above by the 20-day SMA, monthly pivot point and weekly S1. Still, in case the sell-off continues, then the second daily demand can be found near 1,250. However, bullish daily technical indicators suspect gold will manage to turn around later today. Any near-term advance should find a cap at 1,286.49 (weekly PP).
Traders' Sentiment
Following a confident increase in gold prices on Wednesday, a number of SWFX market participants fixed profits and sent the bullish market share to the downside once again. At the moment only three out of ten traders are holding long positions, down from 33% yesterday.
© Dukascopy Bank SA