© Dukascopy Bank SA
"Obviously, oil prices dropping are adding to deflationary pressures. We may see a rate rise next year, and we could see gold come under pressure as the dollar continues to move higher."
- OakBrook Investments LLC (based on Bloomberg)
Pair's Outlook
On Monday, the bullion declined in price considerably, losing around $25 per ounce to reach the weekly S1 at $1,177. This level is strengthened by the 2013 low from above, meaning that it is strong enough to give the XAU/USD some bullish impetus in order to grow. Despite the yesterday's move, weekly technical indicators are still suggesting that Gold will drop even more. If the price crosses the current support, it has a good chance to fall down to monthly PP / Bollinger band around $1,165 in the foreseeable future.
Traders' Sentiment
Distribution between opened positions for buying and selling Gold went down marginally in favour of latter to reach 72% to 28% proportion in the morning of today. In comparison, yesterday SWFX market participants expected the bullion to advance in 73% of all cases.
© Dukascopy Bank SA