Gold to target March high at 1,284.53

The bullion booked a tremendous rally on Thursday, as a very decisive bullish action managed to close the daily trading above the most important resistance of 1,258/63 represented by the weekly R1 and February high. Boosted by weaker US Dollar, gold is now fluctuating at peak levels since mid-March. We give a quite uplifted likelihood to a testing of the March high at 1,284.53, which is backed by the weekly R2 at 1,286. While technical indicators on daily/weekly time frames are strongly positive, we would not rule out a mid-term spike towards the channel's trend-line and 2015 high at 1,307.  

Sentiment of the SWFX market tanked over the past 24 hours, as various bullish transactions were forced to close amid large-scaled profit-taking. There are only 36% of long open positions this Friday morning, down from 42% yesterday.