© Dukascopy Bank SA
"Gold is surprisingly firm given all the noise. However, this seems to be explained by a key technical break higher through €1,000 in Euro gold."
- Standard Bank (based on MarketWatch)
Pair's Outlook
After major gains for three days in a row, on Wednesday Gold has eventually commenced a correction period from the long-term downtrend line which is currently located at $1,220. As a result, the bullion violated the weekly R1 support line at $1,210. Taking into account constantly bearish technical studies both in short and long-term, we see the metal dropping in value. Moreover, for now there is a high chance of a decrease at least down to $1,192 (23.6% Fibo) which is the closest strong support line at the moment.
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 75% of all trades. Therefore, bullish majority has registered no changes during past 24 hours and is remaining on the highest level in 12 trading days.
© Dukascopy Bank SA