‘Looks like people are ready to buy gold below $1,200 and it is sort of a psychological level. Think people got confounded after Friday’s move and the short ones are buying back now.’ – Yuichi Ikemizu, Standard Bank (based on Reuters)
During the early hours of Monday’s trading session the yellow metal’s price had surged above the 1,210 mark, as the bullion continued the course of regaining its losses. The commodity price managed to pass a resistance cluster just below the 1,210 level, and the metal faced only the weekly PP at 1,211.87. The weekly PP is the last resistance level before the 1,219.20 mark, where the 38.20% Fibonacci retracement level is located at. Due to these factors combined, it is expected that the cluster below will provide enough support to push the metal’s price higher.
Traders are bullish on the metal, as 52% of open SWFX positions are long. In addition, 60% of trader set up orders are set to buy the bullion.