© Dukascopy Bank SA
"We think China's volatility and its implications for the U.S. are the top risks for gold in 2016."
- Barclays (based on CNBC)
Pair's Outlook
Thursday saw gold prices depreciating on the back of increasing risk appetite across the board. After the bullion met a tough resistance near 1,127 it started to lose value and closed near 1,115 by yesterday evening. On Friday the metal is largely unchanged despite some initial volatility in the Asian session. Markets are waiting for US GDP statistics, where a disappointment could reverse markets back to the North. The bulls continue aiming at monthly R3 and 200-day SMA around 1,127/30 and today their ideas are shared by daily technical indicators.
Traders' Sentiment
The portion of bullish market participants in the SWFX market bounced off the lowest level in three months. It grew from 53% to 54% by Friday morning, thus expanding the gap from bears up to eight percentage points.
© Dukascopy Bank SA