© Dukascopy Bank SA
"Gold looks to range trade between $1,169-$1,180 over the short term with the risk to the downside should positive news come out of the Greek debt negotiations."
- MKS Group (based on CNBC)
Pair's Outlook
Penetration of the major support zone at 1,180 (2013 low and weekly S1) was supposed to provide the precious metal with significant bearish momentum. Yesterday the metal posted a decline, but losses were limited by the lower Bollinger band at 1,171. This technical level is, however, not considered to be reliable enough in order to keep bears aside for a long period of time. Therefore, additional attempts to fall as low as Jun low/monthly S1 at 1,162 are likely to take place in the near term.
Traders' Sentiment
The total share of long open trades at the SWFX market remains solid at 70%, while bears are in the minority with just 30% of all trades. Helped by the bullion's decline in price and profit taking by short traders, the bullish positions increased by five percentage points in the past 24 hours.
© Dukascopy Bank SA