Gold Analysis: Meets resistance at 1,260 mark

Dukascopy Bank Team Dukascopy Bank SA

"The biggest driver of gold has been the relatively weak U.S. dollar."

– Jiang Shu, Shandong Gold Group (based on Reuters)

Pair's Outlook
During the last trading session the yellow metal stopped the jump, which was the result of a breakout out of a triangle pattern. The surge stopped at the 1,260 level, where the 200-day SMA was and still is located at. As a result with a new week a decline has begun, and the bullion's price is set to decline to the 1,248.96 level, where the 50.00% Fibonacci retracement level is located at. In addition, the Fibo is also supported by the newly calculated weekly PP, which is located at the 1,247.55 level.
Traders' sentiment
Traders remain long on the metal, as 54% of SWFX open positions are long. In addition, 61% of trader set up orders are set up to buy the bullion.

Interested in GOLD technicals? Check out the key levels

1. R3 1271.27
2. R2 1261.17
3. R1 1255.19
PP 1245.09
1. S1 1239.11
2. S2 1229.01
3. S3 1223.03

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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