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"With ongoing concerns surrounding Greece and a potential default, as well as the Ukraine crisis, gold should find support and hold above the 55-day moving average at $1,225 and 100 day moving average at $1,217 in the near term."
- MKS Group (based on CNBC)
Pair's Outlook
As it was expected, a strong support zone created by the 38.2% Fibonacci retracement and 55-day SMA managed to give Gold some bullish impetus on Monday. Following a sharp drop in the end of last week, the metal rebounded towards the weekly pivot point in the morning on Tuesday. The current trading level is located at 1,245, but we do not see the yellow metal jumping far above 1,249 due to strong resistance area in place. Therefore, the bearish scenario is estimated as the moment as the most appropriate for bullion's development in the medium-term.
Traders' Sentiment
Sentiment towards the precious metal is remaining strongly optimistic among SWFX traders, while the share of bullish positions rebounded slightly to 69%, up from 67% in the morning on Monday but still down from 73% back last Friday.
© Dukascopy Bank SA