- Lee Cheong Gold Dealers (based on CNBC)
Unexpectedly high bets on rate increases from the US later in the year pushed the yellow metal noticeably down against the American currency. The February uptrend was tested for the first time since early March and now the 20-day and weekly S1 are at risk of being violated. A slump under the 1,230 level should expose the monthly at 1,205. Daily technical indicators are not signalling to the upside any more, while trading dipped to the lowest level since Feb 15. It may add to increased market in the foreseeable future.
The negative gap between traders, who are looking for gold's downside tendency and those who are betting on an increase, narrowed to ten percent over the previous working day. This is down from 16 pp just after the weekend.