‘There is no doubt that gold is going through a soft patch right now, but it is approaching good support between $1,190 and $1,200.’ – Edward Meir, INTL FCStone (based on Reuters)
Pair’s Outlook
On Friday morning the yellow metal was in a period of consolidation, which was expected after the losses, which were suffered during the two previous trading sessions. On Thursday the bullion almost touched the 1,225 mark before it suddenly rebounded. The previous forecast of the metal reaching for the combined support of the 100-day SMA at 1,223.79, 38.20% Fibonacci retracement level at 1,219.20 and the monthly S2 at 1,218.01 remains in force. The main fundamental reason for that would be the fact that during the weekend the French election final results will come in, and with it uncertainty will be gone.
Traders’ Sentiment
Traders are neutral bearish, as 52% of open positions are short. However, 64% of trader set up orders are to buy.
