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"The short-term direction of gold is being driven by the dollar, oil and general risk sentiment in the market."
- Citics Futures Co. (based on Bloomberg)
Pair's Outlook
A strong bullish tendency for Gold continued on Monday, as XAU/USD cross passed through a major resistance line represented by the monthly R1 at $1,233, as well as the 38.2% Fibonacci retracement just below it. At the moment Gold is trying to penetrate the weekly R1 at $1,238. If successful, we see it growing in price even more and reaching the weekly R1/55-day SMA at $1,254. Judging from technical indicators, however, the metal may stay unchanged for some time, before eventually resuming trading in the bearish trend.
Traders' Sentiment
Distribution between opened positions for buying and selling Gold is still remaining strongly positive and in favor of former, as bulls have a majority with 75% of all trades. As a result, bullish-bearish distribution of opened positions returned back to the level seen on Thursday of last week.
© Dukascopy Bank SA