Gold Analysis: Rebounds after touching 1,163 mark
|"Inflation as well as pace of interest rate hike expectations among the investors are increasing along with the opportunity cost of holding gold."
– Mark To, Fung Financial Group (based on Reuters)
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Pair’s Outlook
The fall of the yellow metal, which began on Wednesday, stopped on Thursday morning, as the bullion reached a ten month low level by touching the weekly S1 at 1,162.76. The move was expected, as the metal faced no other level of support up to the before mentioned first weekly support. As a result of the rebound, gold is most likely to surge up to levels just below the 1,190 mark before it continues its downward path in accordance with the descending channel pattern.
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Traders’ sentiment
SWFX trader sentiment no longer stagnated on Thursday, as trader open long positions increased to 59%, compared to 58% during the previous consecutive four sessions. Meanwhile, trader set up orders remain bullish, 57% of pending commands were set up to buy the metal. Although, it is a 3% decrease from Wednesday’s 60%.
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