‘To go higher, gold needs constant injections from political uncertainty or increases in geopolitical tensions.’ – James Steel, HSBC (based on Reuters)
The yellow metal continues to surge, as political uncertainty increases demand for a safe haven investment. However, from a technical perspective, it seems that the 20-day SMA was strong enough to push the yellow metal higher. In addition, during the move the bullion broke through the resistance put up by the weekly PP, which is located at 1,196.86. Due to that reason the commodity price might rise up to the weekly R1 at 1,213.16, as there are no other levels of resistance up to that mark.
Today 51% of SWFX traders are still bullish. In the meantime, 58% of trader set up orders are set up to buy the yellow metal.