XAU/USD decreases its pace of drop

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Despite the possible gold-bullish ramifications of a Greek default, gold prices did little, indicating investors are not yet focused on gold as a safe haven as regards the Greek crisis."
- HSBC (based on CNBC)

Pair's Outlook

The bullion is using the opportunity to decline in value, provided with broad free space down to the monthly S1 at 1,162. As a result, the metal has already been slumping for a fourth consecutive day, while a confident recovery is unlikely in the short term. Gold seems to have consolidated below the 2013 low/weekly S1 (1,180), making the idea of growth even more difficult to implement. Nonetheless, the probability of slight upside changes still exists, especially considering a strong buy signal from the technical studies. 

Traders' Sentiment

The total share of long open trades at the SWFX market remains solid at 71%, while bears are in the well-pronounced minority with just 29% of all trades. Bullish sentiment on the market gained one extra percentage point in the past 24 hours.  

© Dukascopy Bank SA

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