© Dukascopy Bank SA
"The lack of follow through buying after clearing $1,200 is a worrying sign for the yellow metal and it looks again likely to test a break lower through the broad $1,180 to $1,185 support range."
- MKS Group (based on CNBC)
Pair's Outlook
The yellow metal traded in the turbulent environment in course of the trading session on Monday. Initially, the bullion managed to climb above the 1,195 supply area and even surpassed the 1,200 mark to reach its daily high at 1,204. However, US fundamentals provided the Greenback with bullish impetus, and gold fell back to 1,190 by the end of daily trading. A failure to consolidate above the resistance zone may signal about lack of bullish strength under existing fundamental conditions. Moreover, judging from weekly and monthly technical studies, the metal is likely to resume losing value in the medium-term perspective.
Traders' Sentiment
Advantage of bulls over bears at the SWFX market decreased noticeably from yesterday, as the total share of long opened positions slid by eight percentage points, down from 63% to 55%.
© Dukascopy Bank SA