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"We have to suspect that as U.S. macro data starts to deteriorate, the dollar will likely continue to weaken from here, providing further upside to impetus for gold."
- INTL FCStone (based on CNBC)
Pair's Outlook
On Tuesday and Wednesday the bullion repeated development seen on Friday and Monday, respectively. Following a strong advance two days ago, gold remained broadly unchanged in the past 24 hours. It seems that narrow trading boundaries are being built by the monthly R1 at 1,147 and 100-day SMA, currently at 1,142. A failure at the latter level would expose a strong demand zone at 1,130/32. From the other side of the coin, only a spike above 1,155 (Aug 24 high/weekly R1) can affirm any of bullish intentions among market participants.
Traders' Sentiment
For the past four working days the share of SWFX bullish open positions has remained largely stable, while yesterday their portion added only one percentage point from 52% to 53%.
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