‘We think that gold’s slide could perhaps extend to $1,180 to $1,200, an area of good technical support.’ – Edward Meri, INTL FCStone (based on Reuters)
Pair’s outlook
Although the yellow metal had passed the support cluster near the 1,220 mark on Tuesday, it traded back above it on Wednesday morning. The reason for the sudden rebound, which occurred late in the Tuesday’s session, was the slight decline of the US Dollar caused by US President Donald Trump firing the Director of FBI. However, the yellow metal is still set to decline, and yesterday’s move showed that the support cluster can be passed. Due to that it is assumed that the cluster at 1,220 will be passed and the bullion will decline down to the weekly S1, which is located at the 1,212.68 mark.
Traders’ sentiment
Traders remain neutral on the metal. However, 65% of SWFX trader set up orders are to buy the metal.
