‘A resurgent U.S. dollar, along with higher U.S. yields and equities has taken the momentum out of the gold rally for now.’ – Jeffrey Halley, OANDA (based on Reuters)
Pair’s Outlook
After failing to score more gains on Tuesday the yellow metal declined, and the commodity price fell below the 1,250 mark, where it remained on Wednesday morning. Due to the fact that the bullion’s price recently passed the support put up by the 50.00% Fibonacci retracement level, which is located at the 1,248.96 mark, the price is set to fall. The reason for that is the fact that the closest support level is located at the 1,240.87 level. At that level the weekly PP is residing. The pivot point is also supported by the lower trend line of a medium term ascending channel.
Traders’ Sentiment
SWFX market sentiment remains neutral bearish, as 51% of open positions are short. Meanwhile, 64% of trader set up orders are to buy the yellow metal.
