Gold meets resistance at 1,092 as correction is looming
"The selloff in riskier assets is boosting short-term demand for bullion. We think the Fed will continue its moderate approach to increasing interest rates."
- Huatai Great Wall Futures Co. (based on Bloomberg)
Pair's Outlook
The precious metal bounced off a strong 1,084 support cluster yesterday, while nearing the weekly pivot point at 1,092 by the end of Wednesday trading. Such a move was mainly prompted by reversed gains on stock markets across the world. More uncertainty should support gold in the mid-term, as the bulls could try to reclaim the 1,100 psychological mark. This scenario is encouraged by daily technical indicators. Otherwise, however, the bears are still setting eye on 20/55-day SMAs and the monthly R1 at 1,084/79.
Traders' Sentiment
The total number of long open positions in the SWFX market changed marginally yesterday, as it recovered one percentage point from 54% to 55% it had lost one day before.
- Huatai Great Wall Futures Co. (based on Bloomberg)
Pair's Outlook
The precious metal bounced off a strong 1,084 support cluster yesterday, while nearing the weekly pivot point at 1,092 by the end of Wednesday trading. Such a move was mainly prompted by reversed gains on stock markets across the world. More uncertainty should support gold in the mid-term, as the bulls could try to reclaim the 1,100 psychological mark. This scenario is encouraged by daily technical indicators. Otherwise, however, the bears are still setting eye on 20/55-day SMAs and the monthly R1 at 1,084/79.
Traders' Sentiment
The total number of long open positions in the SWFX market changed marginally yesterday, as it recovered one percentage point from 54% to 55% it had lost one day before.