Gold takes break after touching 1,260
Tuesday's trading range of gold prices was very tight, compared to Monday's one. XAU/USD tested the crucial 1,260 mark, namely the weekly R2, but was eventually forced to come back and close the US evening session near 1,255. A second unsuccessful attempt to breach the 1,260/63 resistance cluster, which is also backed by the February high, would diminish the outlook. The bears are starting to prepare for an attack on a very dense demand between 1,237 and 1,221. Only by closing below the latter (55-day SMA) the bullion will be able to reestablish the negative outlook, which is backed by the daily technical indicators.
Sentiment among traders of the SWFX market has changed by only one percentage point since yesterday, as about two thirds of all market participants are still maintaining a sceptical opinion on gold.