‘There is a strong technical resistance at $1,250 and that seems to have been felt strongly at this juncture.’ – Barnabas Gan, OCBC (based on Reuters)
Pair’s Outlook
During the early hours of Thursday’s trading session the yellow metal was in a retreats, which was initiated by the end of Wednesday’s trading. Although initially it might seem that the 50.00% Fibonacci retracement level at 1,248.96 has reversed the direction of the bullion that is not true. The commodity price was pushed lower by a long term downwards aimed trend line, which can be drawn by connecting the August and September heights with the high level of February. It is, however, a high possibility that the metal will attempt to break this resistance and surge to the 1,256 level, where the next resistance level is located at.
Traders’ Sentiment
Traders are neutral bearish on the metal, as 51% of open positions are short. Meanwhile, 65% of trader set up orders are to buy the bullion.
