‘We’ve seen a rise in the amount of safe-haven buying in the past few weeks around the critical uncertainty in the U.S. and Europe, and the executive order signed by Trump has raised the uncertainty even higher.’ – Daniel Hynes, ANZ (based on Reuters)
The yellow metal began the week higher due to US Dollar weakness. The fall in the Greenback during the weekend was caused by uncertainty caused by US politics. Particularly, Donald Trump’s signed policies are making their impact of uncertainty on the financial markets due to their unforecastable nature. From a technical perspective, the bullion is likely to surge up to the newly calculated weekly PP at 1,196.86. However, the commodity price is most likely to bounce off from the resistance level afterwards.
SWFX traders still remain almost neutral, as 51% of open positions are long on Monday. In the meantime, 58% of trader set up orders are to buy the bullion.