‘Should volatility remain becalmed, gold may find itself on the losing end of a deeper correction to the downside.’ – Jeffrey Halley, OANDA (based on Reuters)
Pair’s Outlook
During the early hours of Tuesday’s trading session the yellow metal’s price remained above the 1,225 mark, as the bullion found support in the 100-day SMA. The simple moving average is located at the 1,225.59 level and provides significant support, as it has kept the metal’s price from falling during this week. It is most likely that the commodity price will continue the decline, if the SMA is passed, as the lower Bollinger band has moved below the 100-day SMA. Due to that factor the next targeted support is the 38.20% Fibonacci retracement level, which is located at the 1,219.20 level.
Traders’ Sentiment
SWFX sentiment is neutral, regarding the metal. However, 66% of SWFX trader set up orders are to buy the bullion.
