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"Even though the Swiss announcement was well known and the Swiss government isn't a huge buyer, the market is drawing comparisons with other central banks going down the same road of not increasing [gold holdings] as much as thought."
- Fat Prophets (based on CNBC)
Pair's Outlook
The bullion for immediate delivery dropped 2.1% to $1,142.88 an ounce in the end of the trading session on Friday, reaching the lowest level since November 7, when it fetched four-year low of $1,132.16. Gold has lost 17% since reaching the peak in March, while investor holdings of exchange-traded products are near a five-year low. In the nearest future we predict the price to reach the 2014 low at $1,131 and then bounce back to trade slightly to the north.
Traders' Sentiment
Advantage of bulls over bears on the SWFX market remains rather strong. For the time being as many as 59.21% of market participants are holding bullish positions on the yellow metal, which is slightly higher than a percentage of longs seen back on Friday's morning.
© Dukascopy Bank SA