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    Gold picks up and eyes February highs

    © Dukascopy Bank SA
    "Weak data globally is adding to concerns over a slowdown and that is helping gold".
    - a bullion trader in Hong Kong (based on CNBC)

    Pair's Outlook
    Monday has been a green day for the bullion, which bounced off the February uptrend and spiked towards the 1,240 mark. Tuesday sees a continuation of the bullish tendency, which is estimated to lead to a testing of the first weekly resistance at 1,249. This one is guarding the February 24 high at 1,253 and the multi-month high at 1,263. Growth beyond the latter is unlikely throughout the next 24 hours, unless there is any heavy shock from external economic factors. However, daily technical indicators do not abandon their optimistic stance, meaning general sentiment prefers a rally to a bearish correction.

    Traders' Sentiment
    Market participants that are betting on gold's rally began returning to the marketplace and pushed their respective share of total open positions to 31% from 27% yesterday. For the first time in five days less than 70% of all SWFX traders are short on the bullion.

    © Dukascopy Bank SA

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