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"Over the next two weeks ... if the economy is on the firm side in the U.S. and the Fed is ready to move, maybe July at the earliest, then I would say gold is ready to see a correction."
- UBS Wealth Management (based on CNBC)
Pair's Outlook
Over four trading days through Monday of this week the precious metal has fallen by about 2.5% of its value and the sell-off continues to take place today. By closing below the major 55-day SMA, currently at 1,249.52, gold puts its near-term outlook at a substantial negative risk. We see the closest demand reaching the metal as low as 1,235.20 where the monthly S1 lies for the moment. To meet this support, however, gold will have to accept additional 1.1% of losses from Tuesday's open price. Despite that, daily technical indicators suspect there is a roughly equal probability of both gains and losses today.
Traders' Sentiment
We have seen the number of bullish trades growing to 41% from 37% over the past 24 hours. This tendency confirms the fact of profit taking from short positions that had been opened prior to the most recent falling streak of gold prices.
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