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– Daniel Hynes, ANZ (based on Reuters)
Pair's Outlook
The yellow metal began a decline after reaching above the first monthly resistance at 1,184.64 and touching the 1,187.82 level, where a medium-term trend line was located at on Tuesday. The bullion is most likely set to decline after reaching these heights, as during the retreat the metal fell below the monthly R1. Further below the monthly R1 the closest support level is the weekly PP 1,167.75. In addition, markets are expecting a stronger US Dollar not only due to technical reasons but also fundamental events about to occur.
Traders' Sentiment
Traders have not changed their opinion regarding the bullion, as both open positions and set up orders remain unchanged on Tuesday, respectively 56% long and 62% to buy the metal.
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