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– Richard Xu, HuaAn Gold (based on Reuters)
Pair's Outlook
As predicted, the yellow metal trades above the 1,210 mark on Tuesday morning. However, after the drastic surge it is most likely that the bullion's price will slightly retreat, as some will take out profits. Although, from a technical perspective the rate has run into the first weekly resistance at 1,211.87. It will take some time until gold break this resistance. After that occurs the commodity price will aim for a new target, which is located near 1,219 level. There the combined resistance of the 38.20% Fibonacci retracement level with the second monthly resistance are located.
Traders' Sentiment
Traders remain bullish on the bullion, as 53% of open positions are long on Tuesday. In the meantime, 57% of trader set up orders are to buy the metal.
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