- HSBC (based on Wall Street Journal)
Ahead of the meeting of the European the Dollar is broadly gaining ground across the board. This is putting downside pressure on gold for a second consecutive day on Wednesday. Despite that, we do not see any substantial losses and the price holds above the weekly of 1,251. A breakthrough here would neutralize our outlook on the bullion and we will see the February uptrend (1,233) back at risk of being penetrated. However, given positively-biased daily technical indicators and support lines at 1,228/23, a slide is unlikely to be long-lasting.
Market sentiment in the SWFX market is changing within the margin of error on a daily basis. Over the past 24 hours the share rose to 59% from 57%, therefore regaining two percentage points it had lost one day before.