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"Gold's inability to hold over the psychological $1,200 level, which it recently cleared, suggests that bullion may be susceptible to a further consolidation of gains."
- HSBC (based on CNBC)
Pair's Outlook
In line with expectations, XAU/USD failed to limit its downward correction within any range above the long-term downtrend line. Gold lost around $15 per ounce on Monday and fell back below the major support line at 1,192. At the same time, the bullion received some bullish impetus from 2013 low and weekly S1 at 1,180 which capped the yellow metal from losing even more value. Despite bullish daily technical indicators, a short-term rebound seems unlikely, while a slump below 1,173 (monthly S1) might clear the way towards weekly S2 at 1,158.
Traders' Sentiment
Sentiment towards the precious metal is optimistic among SWFX traders as the total share of bullish positions (62%, -2% since yesterday) has a strong advantage over the bearish ones at the moment.
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