- LOGIC Advisors (based on Wall Street Journal)
Technical trading of the bullion remains uncertain at the moment, because there are several important resistances and supports surrounding the present spot price of 1,217. From the upside, the weekly at 1,224 is the most immediate supply, followed by the 23.6% of the Dec-Mar uptrend and the 20-day at 1,227/30. Still, we suspect that the market will attempt to push gold prices lower in the near-term. However, XAU/USD will inevitably hit a tough cluster of demand levels and the first support is going to be placed at 1,205 (weekly S1; 55-day ).
With value losses, several short traders have initiated some profit taking in the SWFX market. It decreased the overall share of the bears down to 53% by Monday morning from 59% three days ago.