‘Gold should retain a measure of support given the political tensions.’ – Edward Meir, INTL FCStone (based on Reuters)
Pair’s Outlook
During the early hours of Tuesday’s trading session the yellow metal continued to trade just below the resistance cluster, which is located near the 1,257 mark. Just as forecasted, on Monday the bullion bounced between the just mentioned cluster and the support provided by the 50.00% Fibonacci retracement level, which is located at the 1,248.96 mark. The fluctuations should continue. However, it is possible, if the political turmoil persists, that the commodity price breaks the resistance put up by the weekly PP at 1,256.96 and the 200-day SMA, which is located at the 1,256.67 mark.
Traders’ Sentiment
Traders are still near the neutral zone, as 51% of open positions are short. In the meantime, 54% of trader set up orders are to buy.
