‘Gold will climb about 6 percent through the end of the year as investors seek a shelter from rising political risk, according to Independent Strategy Ltd.’s David Roche.’ – Ranjeetha Pakiam (Based on Bloomberg)
Gold showed solid demand with a surge above the 1,219.20 level, which is strengthened by the 100-hour SMA and the upper Bollinger Band, and taking into account the significance of the area, a consolidative movement should follow on shorter time-frames. The next target on the upside lies at 1,233.81 and could be tested today, in case XAU/USD delays the correction for the next few sessions. In case the breakout is false, 1,211.01 will serve as a floor when the rate returns below the broken area, but we stand in favour of a firmly rising scenario.
Traders remain almost neutral on the metal, as 51% of open positions are short on Monday. Meanwhile, 61% of trader set up orders are to buy the bullion.