‘The reversal was almost entirely due to the surge in the dollar that took place after President Trump revealed he had a ‘phenomenal’ tax plan ready for unveiling in a few weeks’ time.’ – Edward Meir, INTL FCStone (based on Reuters)
No matter how strong the technical perspective of a Gold surge can be, changes in the fundamental situation of the US Dollar are capable of destroying any kind of forecast, by changing the whole base of the markets. Due to a decision made by the President of US Donald Trump, the yellow metal fell on Thursday and continued to do so on Friday. If the situation persists, the bullion will fall at least to the 1,219.20 mark, where the 38.20% Fibonacci retracement level is located at. On the other hand, the yellow metal might rally and surge back up to the weekly R1 at 1,233.81.
SWFX traders have not changed their open positions during the last 24 hours, as 54% of open positions remain long. Meanwhile, 58% of trader set up orders are to buy the metal.