© Dukascopy Bank SA
"Further gains will begin to crimp price-sensitive Asian demand and could threaten one of the planks of the recent rally."
- HSBC Securities (based on Bloomberg)
Pair's Outlook
The bullion rebounded significantly on Tuesday, as bullish impetus was received from the monthly R1 and 55-day SMA around $1,205. Also reflecting weakness of the US dollar, the Gold climbed up to the weekly R1 and 100-day SMA around $1,230. Despite the strong bullish development, daily technical studies are still pointing to the north, meaning that the pair may consolidate around current trading levels. In the medium-term, however, we assume the bullion to decline, as considered by the weekly technical indicators.
Traders' Sentiment
Distribution between long and short opened positions for Gold versus the American dollar on the SWFX market remains broadly unchanged. The sentiment declined only one percentage point during last 24 hours, as now 58% of all positions are long on the yellow metal, compared to 59% on Tuesday's morning.
© Dukascopy Bank SA