© Dukascopy Bank SA
"We believe that trading conditions will start to thin out, but that does not mean trading ranges will necessarily narrow."
- INTL FCStone (based on CNBC)
Pair's Outlook
Despite booking a weekly loss, the bullion managed to regain most of a Thursday's sell-off and grew back in the direction of 1,070. There gold is supposed to meet the July low and 20-day SMA, which will try to put formidable negative pressure on prices. In case they both are breached, the focus will then turn to the first weekly resistance at 1,080, followed by the monthly pivot point and upper Bollinger band at 1,086. At the same time, daily technical studies are mixed and estimate the trading to be broadly sideways throughout the next 24 hours.
Traders' Sentiment
Some of the SWFX traders decided to take profit from a climb that gold prices have seen back last Friday. As a result of that, the percentage of long market participants was slashed from 60% to 57%, the lowest level in almost six trading weeks.
© Dukascopy Bank SA