© Dukascopy Bank SA
"Gold at the moment is being driven by the fear factor -- it rises when euro-zone uncertainty increases, and falls when it decreases."
- Noah Capital Markets (based on Bloomberg)
Pair's Outlook
The downward momentum gold has been developing since mid-January is having trouble pushing the price beyond 1,200. Even though the daily and monthly studies are largely pointing down, the monthly S1 and the round level stand their ground. If this demand area is not broken, XAU/USD will have a good chance to recover back to 1,250 (monthly PP and 200-day SMA), from where it can attempt to launch an attack on the major down-trend at 1,290. Still, the base case scenario is a close beneath 1,200 and a re-test of the 2013 low at 1,180.
Traders' Sentiment
The distribution between the bulling and bearish participants became more skewed in favour of the former following a testimony of Janet Yellen. Now 69% of all open positions are long, while yesterday their share stood at 62%.
© Dukascopy Bank SA