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"While we have stated that Fed tightening may not be as negative for gold as in previous tightening cycles, an April rate rise would likely knock gold lower near term."
- HSBC (based on CNBC)
Pair's Outlook
The bullion is continuously set to hover in limbo after the commodity market returned back to trading on Monday morning, meaning the outlook is largely the same as we had indicated on Friday. This is because the closest resistance lies at 1,227 (23.6% retracement of Dec-Mar uptrend) and the nearest support is the 1,205 mark (monthly PP), while the present spot is placed somewhere in between at 1,215.50. This week's technical indicators are giving a "strong buy" signal, meaning we can foresee buoyant gold near the aforementioned support and also the weekly S1/lower Bollinger band at 1,199.
Traders' Sentiment
Even though the commodity market was shut for trading on Friday, this did not prevent the bullish side from gaining market share. It has advanced to 44% by the March 28 morning from 42% three days ago.
© Dukascopy Bank SA