‘The focus is really on the U.S. fiscal policy. And if that stokes up the inflation expectations, we expect gold to suffer and consolidate for a while.’ – Richard Xu, HuaAn Gold (based on Reuters)
The yellow metal remained near the 1,220 mark on Wednesday morning. The reason for that is that the markets have still not decided upon the future direction of the commodity price. In the meantime, from a technical perspective all of the bullion’s recent moves have been dictated by two levels of significance on the daily chart. From the upside the metal is kept lower by the weekly PP at 1,232.24, and from the downside the bullion is finding support in the first weekly support at 1,219.77 combined with the 38.20% Fibonacci retracement level at 1,219.20.
Traders remain long on the pair, as 54% of trader open positions are long on Wednesday. Meanwhile, 55% of trader set up orders are to buy the metal.