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    XAU/USD skyrockets towards 1,220

    © Dukascopy Bank SA
    "With concerns about the amount of gold reserves, expectations for huge Asian demand around the corner and a U.S. stock market that is vulnerable for a turn, gold could be looking relatively cheap now compared to what could lie ahead."
    - Kitko (based on MarketWatch)

    Pair's Outlook
    As expected, the yellow metal reacted to Friday's US payrolls data with greater volatility in the beginning of a new week. As markets were closed on April 3, Gold managed to price in last week's fundamentals with a jump above 1,215 on Monday. Moreover, the bullion has crossed two important resistances represented by 100 and 55-day SMAs. However, the next supply is strengthened both by monthly R1 and weekly R2 around 1,225, followed by 200-day SMA at 1,233. Therefore, the bullish scenario seems rather difficult to be accomplished in the near-term, but XAU/USD is likely to move towards those levels throughout this trading week.

    Traders' Sentiment
    Distribution between long and short opened positions on the precious metal remains skewed in favour of bulls, as they are holding as many as 67% of all opened trades at the moment, up three percentage points during the weekend.

    © Dukascopy Bank SA

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