© Dukascopy Bank SA
"Gold didn't like the data […]. It may have encouraged some people to take profits on gains from the first quarter."
- LOGIC Advisors (based on Wall Street Journal)
Pair's Outlook
Technical trading of the bullion remains uncertain at the moment, because there are several important resistances and supports surrounding the present spot price of 1,217. From the upside, the weekly pivot point at 1,224 is the most immediate supply, followed by the 23.6% Fibonacci retracement of the Dec-Mar uptrend and the 20-day SMA at 1,227/30. Still, we suspect that the market will attempt to push gold prices lower in the near-term. However, XAU/USD will inevitably hit a tough cluster of demand levels and the first support is going to be placed at 1,205 (weekly S1; 55-day SMA).
Traders' Sentiment
With value losses, several short traders have initiated some profit taking in the SWFX market. It decreased the overall share of the bears down to 53% by Monday morning from 59% three days ago.
© Dukascopy Bank SA