‘Gold will likely continue to rally going into Wednesday’s session as Tuesday’s U.S. stock market selloff was significant and will likely have a knock-on effect on international equity markets over the next 24 hours.’ – Edward Meir, INTL FCStone (based on Reuters)
Pair’s Outlook
The yellow metal began Wednesday’s trading above the weekly R1 at 1,242.38, which began to provide support by the end of Tuesday’s trading. The commodity price is squeezed in between the mentioned weekly R1 and the 50.00% Fibonacci retracement level, which is located at the 1,248.96 level. Due to the persisting bullish sentiment in the markets it can be assumed that the metal will surge, which means that it would pass the retracement level and move in to the next resistance. Above the 50.00% Fibo the closest resistance is the weekly R2 at 1,256.24 and the 200-day simple moving average at the 1,258.57 level.
Traders’ Sentiment
Trader open positions are neutral on Wednesday. Meanwhile, 65% of trader set up orders are set to buy the metal.
