‘A weaker dollar, Korean tensions and the uncertainty with regard to the U.S. debt ceiling negotiations all have the potential to boost gold higher over the short-term.’ – Edward Meir, INTL FCStone (based on Reuters)
Pair’s Outlook
During the early hours of Tuesday’s trading session the yellow metal’s price declined. However, the bullion had found and revealed the proper borders of a medium term ascending channel pattern during Monday’s trading. The lower trend line of the pattern provided support for a rebound of the metal, and it continued to support the bullion on Tuesday. It is highly possible that the trend line will push the commodity price through the resistance levels, which it faces from 1,274 to 1,278. On the other hand, if the support is passed, the bullion could fall to the weekly S2, which is located at 1,263.56.
Traders’ Sentiment
SWFX sentiment remains almost unchanged, as 56% of open positions are short, and 63% of set up orders are to buy the bullion.
