‘The whole situation for gold is more than optimistic because of the geopolitical tensions aroused by North Korea and with the interest rate hike expectations coming down.’ – Mark To, Wing Fung Financial Group (based on Reuters)
Pair’s Outlook
On Wednesday morning the yellow metal’s price was in a retreat just below the 1,290 mark, where the commodity price has been since the higher opening of Monday’s trading session. During the second half of Tuesday’s trading the bullion’s surge was suddenly stopped by a market participant selling around 20 000 futures contracts. That forced the metal to retreat and find support in the 61.80% Fibonacci retracement level, which is located at the 1,278.73 level. It is most likely that this level will continue to provide support to the metal, as it is still expected that the bullion will reach the 1,300 mark.
Traders’ Sentiment
Traders are bearish on the metal, as 55% of open positions are short. However, 64% of trader set up orders are to buy the bullion.
