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"The market jumped after the Fed meeting but there are a lot of people on the long side, so some sort of profit-taking is happening today."
- Lee Cheong Gold Dealers (based on CNBC)
Pair's Outlook
The bullion commenced a reliable recovery on Wednesday, owing to softer than expected rate projections from the Fed. Backed by the January uptrend line, gold soared through the weekly PP and touched the February high at 1,263. Medium-term risks, however, are skewed to the South, particularly because the metal is fluctuating inside the rising wedge pattern. To erode these concerns, XAU/USD is has to violate the six-month resistance located around 1,287. At the same time, on the basis of next 24 hours gold can become a subject to a bearish correction, even though this scenario is still disagreed by daily technical indicators.
Traders' Sentiment
The number of SWFX long open positions dipped down to 38% by Thursday morning from 45% a day ago. This is the worst share of the bulls in 12 working days.
© Dukascopy Bank SA