‘U.S. data on Friday showed a smaller-than-expected 0.4 percent increase in April retail sales from the previous month, while a disappointing report on consumer prices raised concerns about the retail sector and the broader economy.’ – Vijaykumar Vedala, Reuters
On Monday morning the yellow metal continued to score gains against the US Dollar, as the bullion passed a significant resistance level. The commodity price surged to trade above the 100-day SMA, which is located at the 1,229.29 mark. Due to that fact the bullion has a large free range for a surge. The closest resistance level was the weekly R1, which is located at the 1,239.37 level. It is highly possible that the resistance will be reached during this week. However, smaller timeframe resistance levels might hold back the metal.
SWFX market sentiment remains almost neutral, as 52% of open positions are long. However, 64% of trader set up orders are to buy the metal.