‘I would not expect to see much volatility, don’t think anyone is really confident enough to put on any sort of directional trades at the moment until they hear from Yellen.’ – Daniel Hynes, ANZ (based on Reuters)
Pair’s Outlook
The yellow metal was in a rebound on Tuesday morning, as it had found support during the late hours of Monday’s trading session near the 1,220 level. The move was expected, and occurred exactly as forecasted. However, the future movements of the bullion is rather unclear due to a fundamental factor, as chairwoman of the Fed, Janet Yellen, is set to speak in the second half of Tuesday’s trading session. Her comments are likely to drive the bullion’s prices, as she comments on US monetary policy.
Traders’ Sentiment
Traders remain long, as 54% of traders open positions are long. Meanwhile, 56% of trader set up orders are to buy the metal.
