© Dukascopy Bank SA
Even though initially Gold has successfully managed to bounce from the lower trend-line of the bullish pattern on January 30, it failed to gain enough positive impetus in order to grow further. XAU/USD is currently limited by a supply area around 1,280 which is represented by the weekly pivot point and 55-period SMA. In case the bullion manages to cross and consolidate above this line, we may observe a rise up to $1,305 (weekly R1) in the near term. This idea is widely shared by SWFX market participants, as they are long on the precious metal in more than 73% of all cases. Moreover, daily technical indicators are giving bullish signals, even despite the fact that the other ones are rather neutral right now.
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