© Dukascopy Bank SA
"The longer the Fed holds off on raising rates, the better
for gold."
- HSBC (based on Reuters)
Pair's Outlook
The precious metal has finally dealt with the closest resistance cluster represented by the monthly and weekly pivot points at 1,241/43. Now the doors are open for extension of the rally up until the following supply at 1,258/63. There the bullion is going to face the weekly R1, which is backed by the upper Bollinger band and February high. In spite of strongly positive daily and weekly technical indicators, gold may turn bearish near that important zone and commence a correction lower. Nevertheless, deep sell-offs are not a part of the short-term scenario amid a formidable support sector around 1,243/36.
Traders' Sentiment
58% of all traders assume 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 (42%) of all transactions, no change over the past trading session.
© Dukascopy Bank SA