'I would expect investors to stay on the fence... they would likely be market-watching rather than market-trading ahead of the French elections on Sunday, especially when there is no clarity.' – Barnabas Gan, OCBC (based on Reuters)
During the early hours of Friday's trading session the yellow metal continued to trade above the 61.80% Fibonacci retracement level, which is located at the 1,278.73 level. The bullion has lost its momentum due to the fact that the markets are expecting the results of the French presidential election on Sunday. Meanwhile, from a technical perspective, a medium term ascending channel's lower trend line had closed in on the commodity price from the downside. The trend line was located at the 1,276.95 level on Friday.
Traders are shorting the metal, as 57% of open positions are short. However, 64% of trader set up orders are to buy the metal.