‘It is kind of looking like gold is running out of steam in the short term.’ – JJeffrey Halley, OANDA (based on Reuters)
During the early hours of Thursday’s trading session the yellow metal’s price made another attempt to break higher. However, after a successful passing of the 200-day SMA the commodity price did not manage to reach the weekly R1, which is located at the 1,259.70 level. After the attempt the metal’s price began a decline back below the mentioned levels of significance. It is likely that the bullion will retreat down to the support levels, which are located near the 1,250 mark. There it is most likely going to find support, as it did the same exact thing on Wednesday.
Traders are neutral bearish on Thursday, as 51% of open positions are short. Meanwhile, 61% of trader set up orders are to buy.