‘The geopolitical concerns are receding but there are still chances of them coming back again.’ – Richard Xu, HuaAn Gold (based on Reuters)
Pair’s Outlook
The yellow metal continued on its path lower on Tuesday morning, as the metal’s price was about to reach a strong support cluster near the 1,250 mark. The support cluster is most likely going to pause the decline of the bullion’s price. The cluster is made up of the 55 and 200-day SMAs together with the weekly S2 and the 50.00% Fibonacci retracement level. If the metal rebounds it would most likely surge up to the weekly S1, which is located at the 1,260.48 level. On the other hand the upcoming last round of French election can still cause fundamental shifts.
Traders’ Sentiment
Traders remain bearish on the metal, as 52% of open positions are short on Tuesday. However, 67% of set up orders are to buy.
