Gold Analysis: Attempts a rebound on Friday
|"People are rushing to the stock market rather than the gold markets. That is evident in the liquidation we are seeing in the exchange traded funds (ETFs)."
– Ronald Leung, Lee Cheong Gold Dealers (based on Reuters)
-
Pair's Outlook
The yellow metal's price had slightly surged on Friday morning, as the bullion had touched the 1,177.62 mark. However, the metal reached the upper trend line of a short term descending channel pattern, and began to retreat. Meanwhile, daily aggregate technical indicators forecast no changes in the pair. By combining the two factors it seems clear that the rate will fall below to the weekly S1 at 1,162.76 and rebound against it to surge back to a level very close to the opening price of 1.170. In addition, this would then be the third time the weekly S1 would stop the fall of the commodity price.
-
Traders' sentiment
Traders are bullish regarding the metal, as 60% of open positions are long on Friday. Meanwhile, 61% of trader set up orders are to buy the metal.
Interested in GOLD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.