‘There is no other way than looking bullish at gold for the moment. There are extended positions in dollar. We are going to see this dollar correction running for a while, which will support gold.’ – Jaffrey Halley, OANDA (based on Reuters)
During the early hours of Tuesday’s trading session the yellow metal’s price declined and fell below the 1,230 mark. This seems to be a consolidation of positions in the aftermath of a steady surge of more than three percent since the start of last Tuesday’s trading session. It is most likely that the bullion will soon make an attempt of breaking the monthly PP, which is located at the 1,236.39 level. However, it is also possible that the commodity price will first retreat down to the 20-day SMA, which was located at 1,222.94 on Tuesday morning.
SWFX traders are neutral on the metal, as 50% of open positions are long. However, 65% of trader set up orders are to buy the bullion.