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"We see gold continuing to work lower over the course of the coming week, as an upward trending dollar should continue to weigh in on prices."
- INTL FCStone (based on CNBC)
Pair's Outlook
Friday was the second day in a row when gold prices failed to slide below the 55-day moving average line, currently placed at 1,249.95. As a result of that, we observe growing probability of a recovery in the short-term. The bullion will face the first resistance at 1,261/62, the level reinforced by the weekly pivot point and 20-day SMA. The monthly pivot follows both of them at 1,265.92 and acts as the second supply for Monday. Alongside, by failing at the 55-day SMA gold will see its closest support as low as 1,235/33 this time. Technical indicators are giving mixed signals on a daily time frame.
Traders' Sentiment
At the moment the distribution between the longs and shorts remains largely skewed in favour of the latter. However, the gap has managed to narrow down to 26% from 32% over the weekend.
© Dukascopy Bank SA