Gold Analysis: Trades above 1,250 level

Dukascopy Bank Team Dukascopy Bank SA

"Fundamentally, we remain bearish on the yellow metal, underpinned by two more rate hikes by the U.S. central bank in 2017."

– Barnabas Gan, OCBC (based on Reuters)

Pair's Outlook
The yellow metal remains above the 1,250 level, and it is still positioned for additional gains in the near future. The reason for that is the fact that the bullion is above a strong support cluster, which is located from the 1,243 to the 1,249 levels. Meanwhile, the commodity price faces no resistance up to the 1,269 level, where the monthly PP and a medium term trend line are located at. Most likely the bullion will reach for the resistance and bounce off of it during the next upcoming trading sessions.
Traders' sentiment
SWFX market sentiment remains almost neutral, as 51% of open positions are short. However, 65% of trader set up orders are to buy.

Interested in XAUUSD technicals? Check out the key levels

1. R3 1255.38
2. R2 1255.31
3. R1 1255.15
PP 1255.08
1. S1 1254.92
2. S2 1254.85
3. S3 1254.69

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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