‘The U.S. dollar steadied after Treasury Secretary Steven Mnuchin said U.S. President Donald Trump’s recent remarks that the dollar is getting too strong were about the short term.’ – Nallur Sethuraman, Reuters
Pair’s Outlook
After hitting a five month high level the gold price began a period of consolidation, which became a decline due to fundamental events. The main reason for the decline of the bullion’s price was the comments made by the Treasury Secretary of the US Steven Mnuchin, who expressed that the US President sees the strong US Dollar only as a problem in the short term. It is most likely that the bullion will continue its surge, as turmoil around the world drives the run to safety. Moreover, a new medium term ascending channel pattern seems to have revealed itself due to the recent decline of the commodity price.
Traders’ Sentiment
SWFX gold traders remain bearish, as 54% of open positions are short. However, 56% of set up orders are to buy the metal.
