‘At this moment, an interest rate hike will not be a surprise, so any overreaction (to a hike in rates) is unlikely.’ – Mark To, Wing Fung Financial Group (based on Reuters)
During the previous trading session the bullion failed to move even higher, as the commodity price has retreated back to the 1,200 level, where it remained rather flat on Tuesday morning. However, the bullion’s price was positioned to fall, as the closest support level was located at the 1,186.87 mark, where the weekly S1 is located at. In addition, the weekly S1 is strengthened by the lower Bollinger band, which was located at 1,187.74. Moreover, a decline of the price is likely because the 100-day SMA is providing resistance just above the price, as it is located at the 1,205.63 level.
Traders have not changed their opinion, as 52% of open positions are long. Meanwhile, 69% of trader set up orders are set to buy the bullion.