FXStreet (Edinburgh) – Strategists at TD Securities believe the precious metal could test higher levels in the near term.
Key Quotes
“Range parameters remain well defined (we expect firm resistance in the low 1200s and good support in the upper 1100s—note the 200-day/40-week MA signal comes in at 1201)”.
“The tightening range implies pressure is building for a break out (and, possibly, a more dynamic trading environment) in the not too distant future”.
“Recent seasonal patterns favour gold gains in Q3 (consistently positive monthly returns on average through the quarter in the past 10 years) which suggest risks may be tilted a little higher overall in the short run”.
“But the broader technical structure of this market is not especially strong and we still think price is vulnerable to more weakness in the longer term”.
(Market News Provided by FXstreet)