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"We think the current gold price rally will reverse, once risk-sentiment buying fades, similar to the trend seen in early 2014 and 2015."
- Nomura (based on CNBC)
Pair's Outlook
The bullion saw a renewal of the confident uptrend on Thursday. Following success at the monthly R3 at 1,209 gold decided to move higher and eroded the weekly pivot point at 1,221. The only resistance to contain the rally was the May high at 1,232. The RSI indicator is on the verge of signalling that gold is becoming overbought again. We may observe a correction lower throughout Friday, with the key bearish target placed at 1,191 (Oct 2015 high). In the meantime, any surge above May high will immediately expose the recent multi-period high of 1,263.50.
Traders' Sentiment
Even though two days ago the share of bullish positions in the SWFX market rose to 33% from 27%, yesterday it bounced back to 32%.
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