Dukascopy - Analytics


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    XAU/USD surges past monthly R1

    © Dukascopy Bank SA
    "While we do not discount the possibility of further price gains in the near term, bullion may need to break over the technical 200-day moving average of $1,218 in order for the rally to be sustained."
    - HSBC (based on CNBC)

    Pair's Outlook
    As a reaction to disappointing US fundamentals, the precious metal grew noticeably on Wednesday, by registering its fastest daily gain in almost three weeks. Moreover, while supported by the monthly pivot point, Gold received confident bullish momentum to jump as high as the next monthly resistance at 1,213. However, the latter level is currently reinforced by the 200-day SMA from above, which will attempt to send XAU/USD back to the downside, at least below the 100-day SMA at 1,210. However, a move north of the weekly R3 at 1,221 should encourage bulls for further gains up to 1,236 (Feb 16 high). 

    Traders' Sentiment
    Advantage of bulls over bears at the SWFX market is considerable at the moment, as the former are dominating by keeping 71% of all opened positions, down three percentage points during the past 24 hours.  

    © Dukascopy Bank SA

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