Gold Analysis: struggles near 1,190 level
|"In addition to U.S. dollar weakness, the gold rally has depended on a pullback in U.S. bond yields and some moderation in equity gains."
– James Steel, HSBC Securities (based on Reuters)
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Pair’s Outlook
The yellow metal continued to surge during Wednesday’s trading session, marking the third consecutive session of gains. However, the bullion is facing a strong resistance level, which is keeping it down. The resistance is represented by the weekly R1 at 1,189.45, and the resistance is set to become even stronger, as the 55-day SMA is moving lower and will join the weekly R1 tomorrow. In addition, at 1,195.14 is a trend line intersection of the medium and long term patterns. These factors combined indicate at an end of the bullion’s surge. A reversal of the trend is about to occur. -
Traders’ Sentiment
Traders remain bullish, regarding the yellow metal, as 55% of open positions were long on Wednesday. Meanwhile, 58% of trader set up orders were to buy the metal.
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