‘In the short term, factors including a strengthening dollar could pull prices down to around the $1,230 an ounce range.’ – Yuichi Ikemizu, Standard Bank (based on Reuters)
Pair’s Outlook
On Friday the yellow metal began the day’s trading session just above the 1,240 level. The reason for that is the strength of the US Dollar, which pushed the price lower in the second part of Thursday’s trading session. However, the metal seems to have found support in the weekly PP, which is located at the 1,240.87 mark, which indicates that a short period of consolidation is set to occur. Although, the further short term path of the metal is most likely going to be dictated by the US Dollar fundamentals and political risk events around the world.
Traders’ Sentiment
Traders have increased their bearish outlook on the bullion, as 52% of open positions are short, compared to 51% the past three consecutive trading sessions. Meanwhile, 64% of set up orders are to buy.
