© Dukascopy Bank SA
"Physical EM (demand in emerging markets) still appears sluggish, notably but not exclusively in India, an important gold-consuming country. This opens the way for lower prices but we think declines may be modest."
- HSBC (based on CNBC)
Pair's Outlook
The losing streak of XAU/USD was prolonged to three consecutive days on Tuesday, as the metal continued to under-perform despite signs the recovery might take place. The risks of a further decline are growing, considering the fact that the bullion is now hovering below the 2013 low and weekly S1 at 1,180. The nearest support is offered by the lower Bollinger band at 1,171, followed by the monthly S1/Jun 5 low at 1,162.
Traders' Sentiment
The total share of long open trades at the SWFX market remains solid at 65%, while bears are in the minority with 35% of all trades. From yesterday, advantage of the former increased by three percentage points.
© Dukascopy Bank SA