Gold Analysis: Gold still near 1,235

Dukascopy Bank Team Dukascopy Bank SA

Gold continues to tread water post the Federal Open Market Committee minutes, probably the highlight of a very light data week."

– Jeffrey Halley, OANDA (based on Reuters)

Pair’s Outlook

The yellow metal remains near the 1,235 mark, and near that level the bullion has been fluctuating for the past six consecutive trading sessions. However, the flat trading is consistent with the forecasts, as the bullion continued to be squeezed in a medium term triangle pattern. A breakout to the upside is expected in the upcoming trading sessions, and it is most likely to occur at the start of next week. In such case it is highly likely that the metal’s price would reach the 1,250 mark.

Traders’ sentiment

SWFX traders remain bullish on the metal, as 56% of open positions are long on Thursday. In addition, 62% of trader set up orders are to buy the metal.

Interested in XAUUSD technicals? Check out the key levels

1. R3 1254.33
2. R2 1246.59
3. R1 1240.89
PP 1233.15
1. S1 1227.45
2. S2 1219.71
3. S3 1214.01

Author

Dukascopy Bank Team

Dukascopy Bank SA

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

EUR/USD makes a U-turn, focus on 1.1900

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GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.