‘Gold prices will be a little bit rangebound with some upside bias for the next few weeks or so.’ – Barnabas Gan, OCBC (based on Reuters)
The yellow metal traded rather flat during the early hours of Thursday’s trading session. However, it is still set to gain, as the bullion was only searching for a support level which could continue to propel it higher. Moreover, the retreat only began due to the commodity price encountering the uptrend line, which has kept the surge steady for the past weeks. It is most likely that the support will be found in the monthly R1, which is located at 1,237.68. In addition, from a fundamental perspective the bullion is also set to surge.
Traders have become bullish, as 54% of SWFX trader open positions are long. In the meantime, 56% of trader set up orders are to buy the bullion.