Gold Analysis: Attempts a rebound on Friday

Dukascopy Bank Team Dukascopy Bank SA

"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

1. R3 1195.55
2. R2 1186.12
3. R1 1178.86
PP 1169.43
1. S1 1162.17
2. S2 1152.74
3. S3 1145.48

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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