XAU/USD tumbles most since May 26

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Gold remains aloof from any safe-haven buying that may be inspired by the ongoing Greek situation."
- HSBC (based on CNBC)

Pair's Outlook

The nearest reliable support for gold at 1,154 is unlikely to withstand the bearish pressure successfully, following a deep slump in the metal's value on Tuesday. In case the bullion consolidates below this demand today, it will shift the near-term outlook substantially to the negative side. The immediate support is located as low as 1,148, where XAU/USD bottomed out yesterday. However, bears are more probably going to target the 1,140 mark (weekly S1), which is instantly followed by the 2014 low at 1,131. 

Traders' Sentiment

Following a sharp drop in the price of gold yesterday, the share of long open positions at the SWFX market climbed by seven percentage points to 73%, as short traders seem to have fixed their profit.  

© Dukascopy Bank SA

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