‘The ongoing political uncertainty in the market is really driving safe-haven buying at the moment.’ – Daniel Hynes, ANZ (based on Reuters)
Pair’s Outlook
On Tuesday morning the yellow metal remained near previous sessions levels. Although it was expected that the commodity price will decline as low as the weekly PP at the 1,261.80 level, the bullion has continued to pound the resistance of the monthly PP at 1,269.77 for more than the last 24 hours. It is most likely that a fundamental event will set the short term direction of the bullion. It is either going to retreat to the weekly PP or break the monthly resistance and surge. In the case of a surge the metal’s price is most likely going to jump to the weekly R1 at 1,275.49, which marks the beginning of a notable resistance cluster.
Traders’ Sentiment
SWFX traders remain almost neutral, as 52% of open positions are long. Meanwhile, 66% of pending commands are set to buy the metal.
