‘The interest rate hike cycle has set in and that might keep gold in a wide range of $1,200-$1,250 as the opportunity cost of holding non-interest rate bearing gold is more.’ – Mark To, Wing Fung Financial Group (based on Reuters)
On Monday morning the yellow metal attempted to break above the 1,250 mark, as it faced resistance put up by the weekly PP at 1,249.67 and the 50.00% Fibonacci retracement level, which is located at the 1,248.96 mark. If the bullion succeeds, it will likely jump to the 1,257.02 level, where the 200-day SMA is located at. However, in the case of a failure the commodity price has no support as low as the 1,238.33 level, where the weekly S1 is positioned. The weekly S1 is also supported by the freshly calculated monthly PP at the 1,234.74 level.
SWFX traders are neutral on the metal, as 50% of open positions are long. However, 63% of trader set up orders are to buy the yellow metal.