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"Major investing firms are still lukewarm on gold. But I would be cautious about being too much on the negative bandwagon."
- Saxo Bank (based on MarketWatch)
Pair's Outlook
Gold undertook a correction period during the first day of New Year's week. XAU/USD was unable to consolidate above the 23.6% Fibo retracement, which is also reinforced by the 20-day SMA and weekly pivot point around $1,192. As a result, the cross fell below this important line. At the same time, a confident support was provided by the 2013 low and weekly S1 $1,180. Despite that, judging from technical indicators, Gold is likely to decline both in short and medium-term, and we tend to believe them.
Traders' Sentiment
Distribution between opened positions for buying and selling Gold is still remaining strongly positive and in favor of former, as bulls have a stable majority with 67% of all trades (70% on Monday). However, it is the lowest level in around two weeks.
© Dukascopy Bank SA