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"We remain nervous about gold and would not be surprised to see a rather sizable, stop-induced fall to take place if and when we significantly pierce the $1,141 support on the next downswing."
- INTL FCStone (based on CNBC)
Pair's Outlook
Gold depreciated for a fourth day in a row Thursday, and losses are estimated to be prolonged today as well. Therefore, the precious metal is heading for a fourth weekly drop in value. Despite a need for recovery, the short-term outlook is darkened by closeness of a tough support area, which is the main target for bears at the moment. The nearest technical level is represented by the March low at 1,143, followed by the previous year's low at 1,131. Alongside, any gains are most likely going to be rejected by the monthly S1 at 1,154.
Traders' Sentiment
A decrease in gold prices has significantly improved the sentiment of the SWFX market with respect to the metal. It remains strongly positive at the moment as bulls are enjoying a majority of 74% and bears keep only 26% of all open positions.
© Dukascopy Bank SA