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"The retreat in equities plus the continued decline in U.S Treasury yields helped encourage buying in gold."
- HSBC (based on CNBC)
Pair's Outlook
Gold surged on Friday, thus prolonging a winning streak to three days in a row. Both 2014 low and 50% Fibonacci retracement of Aug-Sep downtrend were violated by bulls the same day. However, momentum used to be exhausted by time the bullion came closer to 100-day SMA/61.8% retracement at 1,141/42. A climb above this supply should expose August highs at 1,170 in the medium term. Alongside, a reversal of the uptrend is going to be complicated by major support area, with important technical levels scattered between 1,134 and 1,124.
Traders' Sentiment
SWFX sentiment with respect to gold is broadly bullish at the moment, even though the share of longs lost two additional percentage points to 57% over the weekend.
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