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"The $1,084-85 area is now building as a strong short-term support level with decent stop orders developing below."
- MKS Group (based on CNBC)
Pair's Outlook
We continued to observe very calm trading of the precious metal yesterday. Price is currently placed slightly above this week's low at 1,088. Some momentum can be generated by the Fed Chair Janet Yellen's speech on Thursday and US retail sales data tomorrow. Short traders see the Buck higher at 1,070 in terms of gold prices. Bulls see monthly S1 (1,100) as their main resistance for the moment. Meantime, trading volume declined to four-day low yesterday. RSI technical indicator suggests that gold remains oversold after a sharp sell-off in the beginning of November.
Traders' Sentiment
Bulls gained considerable ground and now they have almost three out of every four open positions in their hands (73%). This is the highest mark in more than three months, providing an undeniable positive signal for gold prices.
© Dukascopy Bank SA