© Dukascopy Bank SA
– Jiang Shu, Shandong Gold Group (based on Reuters)
Pair's Outlook
After the surge on Thursday morning the yellow metal retreated to trade back below the 1,200 mark on Friday morning. The move lower occurred due to the fact that in the aftermath of Trump's speech market participants overbought the bullion, and after that a correction occurred. During the previous tow day surge, the long term descending channel has been broken. Due to that the ascending medium term pattern is the one to guide the metal, and in accordance with it the bullion will surge. In addition, the yellow metal has a strong support cluster near the 1,190 mark.
Traders' Sentiment
Traders remain bullish, as 53% of open positions are long on Friday. In the meantime, 59% of trader set up orders are to buy the metal.
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