Dukascopy Bank Team
Dukascopy Bank SA
"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)
-
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.
-
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%.
Interested in XAUUSD technicals? Check out the key levels
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
Recommended Content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.