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"Gold hasn't really accelerated as a result of what people perceive as a dovish message from the Fed and gold hasn't gapped down as a result of the agreement in Greece."
- UBS Group AG (based on Bloomberg)
Pair's Outlook
It seems that XAU/USD cross is getting ready to test a considerable support line at 1,198 (monthly S1) for a third time in last five days. Moreover, the bullion is now constantly losing value since Thursday of the previous week. If the metal eventually manages to overcome the demand, located just two US dollars below the current market price, then we should observe it retreating down to 1,187 this week (weekly S1). In case of failure to cross the support, Gold can be pushed upwards with a potential goal above weekly PP at 1,215.
Traders' Sentiment
Sentiment toward the precious metal is remaining strongly optimistic among SWFX traders, while a total share of bullish positions lost three additional percentage points from Monday to reach 62% today. As a result, a net loss of the longs reached 9% during past five trading days.
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