© Dukascopy Bank SA
"Investors have begun to see that the equity market is priced for a scenario that may not come to pass. That's led some to flee the market and use gold as a storehouse."
- Huntington Asset Advisors (based on Bloomberg)
Pair's Outlook
The price of Gold changed only marginally on Friday, as the bullion decreased to trade around $1,220 per ounce. At the moment the yellow metal is well supported by this week's pivot point at $1,215, which we do not expect to be breached easily. However, if the XAU/USD cross succeeds in doing that, we can see the extension of the bearish move down to the next major support at $1,205 (monthly R1; 55 and 20-day SMAs).
Traders' Sentiment
Distribution between long and short opened positions for Gold versus the US dollar on the SWFX market remains broadly unchanged for a fifth consecutive day in a row. During weekend, the sentiment stayed bullish on the same level seen on Friday, with 58% of all positions currently going long on the yellow metal.
© Dukascopy Bank SA