© Dukascopy Bank SA
"Gold continued to climb with rising safe-haven demand amid the rebound in market volatility. Rising equities losses and surprising devaluation of the yuan are painting a positive picture for gold."
- ANZ (based on CNBC)
Pair's Outlook
A rally for the bullion is taking place for a fourth consecutive day on Thursday. Yesterday we saw the sharpest climb in a month, after prices went through two vital resistance areas near 1,085 and 1,091. The first obstacle was more important, as it was reinforced by 55-day SMA, weekly R2 and monthly R1. Now the main focus is turning to the psychological level of $1,100 per ounce. It is guarded by the monthly R2 and 100-day SMA around 1,108, followed by the monthly R3 at 1,127. Nonetheless, the daily RSI indicator is already assuming the precious metal is somewhat overbought at the moment.
Traders' Sentiment
Only six percentage points are now dividing the bulls from bears in the SWFX market. The former are holding only 53% of all open positions, down from 54% we had observed 24 hours ago.
© Dukascopy Bank SA