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"Gold benefits from an increase in risk aversion. With crude oil below $50 and uncertainty building around Greece, equity markets have been dragged lower, triggering a flight to safety."
- Wing Fung Financial Group (based on Bloomberg)
Pair's Outlook
Gold appreciated further on Monday, as it managed to consolidate above the major cluster of support levels around $1,190 and even surpassed the major level at $1,200. Currently XAU/USD is trading just below the next resistance line at $1,210 (weekly R1), which is not considered as a strong one, but is able to calm down bullish pressure. However, if Gold breaches this line, the next obstacle for it is placed just ten dollars to the north at the long-term downtrend. Judging from medium-term technical studies, this supply area may eventually help the pair to resume its long-term movement to the south.
Traders' Sentiment
Distribution between opened positions for buying and selling Gold is still remaining strongly positive and in favor of former, as bulls have a majority with 72% of all trades.
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