- a trader in Hong Kong (based on CNBC)
Risk-averse sentiment among market participants made the precious metal increasingly buoyant on Monday. After piercing through the Nov-Dec downtrend line, gold approached a vital resistance in face of the weekly R2, monthly R1, upper and 55-day at 1,084. However, the daily close was fixed around 1,075 and below the two-month trend-line. However, Tuesday morning we are seeing extra momentum, which is pushing the bullion higher. Any consolidation above 1,075 will expose the 1,084 . Moreover, the bulls are getting additional support from monthly/weekly PPs at 1,065.
Yesterday the portion of SWFX positions deteriorated back to 54%, down from 56% where the share of the longs stood since Thursday of the previous week.