Gold reaches targeted support

• Market sentiment is 53% bearish
• 55% of pending orders in 1000-pip range are set to SELL gold
• The yellow metal has hit expected targets
• A rebound is taking place

The yellow metal reached the support levels, which are located just above the 1,300 mark and rebounded against them just as expected. Due to that reason the future should be looked at or a pause might be taken.

The ISM stated that the US Manufacturing PMI increased from 59.1 in January to 60.8 in February, representing the highest mark since May 2004. The US manufacturing activity strengthened in the reported month mainly due to expending exports that are showing their highest growth rate since April 2011.

In fact, growing employment rate also was one of the factors driving the overall expansion in the domestic manufacturing sector.

Look forward to next week

XAU/USD moves as forecast

The support levels just above the 1,300.00 mark where reached even faster than it was expected.

Mainly the move has been associated with the strength of the US Dollar, but the combination of various supports at the mentioned level managed to force the metal into a rebound.

During the rebound various resistance levels where passed, and by the middle of Friday's trading the bullion was trading sideways above the 1,315 mark.

In general, the situation needs to be watched, as a sudden surge or decline was about to occur.

Hourly Chart

The recently speculated new long term channel has been confirmed. However, a slight adjustment to the trend lines might be done.

Daily Chart

Markets short the metal

SWFX market sentiment remains 53% bearish. Meanwhile, pending commands are set to buy the bullion in 51% of all cases.

OANDA traders are long, as 59% of open positions are long, compared to 51% short on Thursday. In addition, SAXO bank traders are 54% bullish.

Spreads (avg, pip) / Trading volume / Volatility