HomeContributorsTechnical AnalysisGold Approaches 1,230 Level On Thursday

Gold Approaches 1,230 Level On Thursday

‘Yellen reiterated that future rate increases would be ‘gradual’, with this key word bestowing a dovish tone to the outlook.’ – Edward Meri, INTL FCStone (based on Reuters)

Pair’s Outlook

On Thursday morning the yellow metal’s price continued to score gains in the aftermath of the jump, which occurred on the Federal Funds rate increase on Wednesday. Although, the commodity price has run into the resistance of the weekly R1, which is located at the 1,228.89 level. It is highly possible that a consolidation of positions will occur, as traders take profits. However, the decline of the price is unlikely to fall lower than the 1,220 mark, near which the 20-day SMA and the 38.20% Fibonacci retracement level are located at. Due to that reason it can be assumed that the pair will rebound against the mentioned support levels.

Traders’ Sentiment

Traders are bullish on the metal, as 53% of open positions are long on Thursday. In addition, 68% of trader set up orders are to buy.

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This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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