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XAU/USD pierces through weekly PP

© Dukascopy Bank SA
"There's a mindset that higher interest rates translate into a higher dollar. Even if it doesn't, the higher interest rates you're going to have are still going to put a lid on the upside for gold by damping inflation."
- Alliance Financial LLC (based on Bloomberg)

Pair's Outlook
The XAU/USD cross has finally breached the nearest resistance at 1,179, represented by the weekly PP. Moreover, the bullion went further to the north, while closing the Wednesday's trading session above the June 4 high at 1,186. In case gold preserves its bullish momentum on June 11, it will be anticipated to grow as high as monthly PP/55-day SMA at 1,197 in the short-term. Despite that, the majority of technical indicators still see the yellow metal lower. 

Traders' Sentiment
Advantage of bulls over bears at the SWFX market strengthened even more during the past 24 hours, as the total share of long opened positions (75%) advanced by two additional percentage points from yesterday, pushing the portion of short trades even deeper into the red, down to just 25%.  

© Dukascopy Bank SA


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