- RBC (based on Wall Street Journal)
Monday trading was finished with sharp gains for gold , as the price closed above the first weekly resistance line at 1,257.50. However, the bulls failed to extend this rally up to the second supply area placed between 1,260 and 1,263. We expect it to happen this week, but we are not ruling out a correction lower on Tuesday after some traders fix profit. It will be more than enough to hold the price above yesterday's low/opening level of 1,239. Among additional risks, the daily technical studies are still maintaining the "sell" view, but dense demand areas below 1,235 should prevent XAU/USD from deep collapses.
In the morning on Tuesday only a third of SWFX market participants have held long positions on the bullion. This is down from 37% we had seen 24 hours ago and 51% on Friday.