- Rich Ross, Evercore ISI technical analyst (based on CNBC)
The Yellow metal bounced back to the level of May 23, as the Greenback lost its strength against all other currencies and commodities. Main reason for the surge were the US Non-Farm Payrolls, which were published as an increase of 38,000 and fell short the forecasted 160,000. With it the bullion gained 2.7% from 1,210.35 to 1,243.85. However, at the moment it is trading at 1,242.17 which is just below the 55-day simple moving average at 1.244.12 and below the monthly PP at 1,239.18. Further gains for the gold are unlikely, as the price correction has already ended and the metal is slowly continuing its previous course.
Traders became neutral on the bullion with 50% of all open positions being long. Previously long positions had reached 55%, which means that the 5% decrease might be bulls taking in profits from Friday.