‘The Fed will likely pass on a rate move in March.’ – Edward Meir, INTL FCStone (based on Reuters)
The yellow metal on Tuesday morning was regaining some of the losses, which it suffered during Monday’s trading. However, the losses suffered on Monday were most likely just a consolidation in the aftermath of the breakout to the upside, which occurred at the end of last week. It is most likely that the bullion will make another attempt at the resistance cluster, which it faces on Tuesday. The cluster is made up of the upper Bollinger band at 1,257.69 and the 200-day SMA at 1,260.23. On the other hand, the metal might seek more support in the 50.00% Fibo at 1,248.96 level.
SWFX traders remain long on the metal, as 53% of open positions are bullish. In addition, 59% of set up orders are set to buy the bullion.