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    Gold price soars beyond resistance at 1,227/34

    © Dukascopy Bank SA
    "Gold bugs might like to stay bullish, they are not foolish and would like to take profit from the recent rally."
    - Wing Fung Financial Group (based on Bloomberg)

    Pair's Outlook
    Along with tumbling US currency, the bullion skyrocketed the most in two weeks yesterday. Prices pierced through the immediate resistance area of 1,227/34 and encountered the Feb-Mar uptrend line at 1,240. We would allow for a short-term selloff today as a part of post-growth correction lower. Outlook for the future remains depressed, as the rebound looks unsustainable. A spike above the first weekly resistance and March 23 high (1,247) should improve expectations, but daily technical studies generally think that the best option to choose on Wednesday is the wait-and-see mode.  

    Traders' Sentiment
    Active trading conditions and ultimate gains for XAU/USD forced a closure of many bullish open trades. Therefore, a negative gap between the bulls and bears widened to 22% by Wednesday morning, up from only six pp 24 hours ago.  

    © Dukascopy Bank SA

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