Gold Analysis: Retreats after massive gains

Dukascopy Bank Team Dukascopy Bank SA

"Spot gold may retrace moderately to a support at $1,252 per ounce, before retesting a resistance at $1,264."

– Wang Tao, Reuters

Pair's Outlook
On Thursday morning the yellow metal's price was in a retreat, as it had failed to break the resistance put up by the weekly R3, which is located at the 1,261.72 level. However, this retreat comes after scoring massive gains. During Wednesday's trading the bullion gained more than 2% and 2500 base points. Due to that it is normal that a period of consolidation is occurring. However, from a technical perspective on the daily chart gold is still set to gain additional ground in the near future, as the weekly R3 is a lone resistance.
Traders' Sentiment
Traders are almost neutral in regard to the metal, as 51% of open positions are long. However, 68% of trader set up orders are to buy.

Interested in Gold technicals? Check out the key levels

1. R3 1295.10
2. R2 1278.20
3. R1 1269.70
PP 1252.80
1. S1 1244.30
2. S2 1227.40
3. S3 1218.90

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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