XAU/USD violates 38.2% retracement

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Disappointing equity performance, combined with the actions of the Swiss National Bank, turned the spotlight on gold's role as a store of wealth. And while long positions on COMEX have been relatively stable over recent months, short positions have fallen sharply since November."
- World Gold Council (based on CNBC)  

Pair's Outlook 
After a two-day long pause, Gold continued to decline in price. Yesterday, the precious metal slipped below the closest demand area at 1,230 which was represented by the 38.2% Fibonacci retracement and 55-day SMA. At the same time, the next support is already getting ready to fight against a further plunge of the bullion's price. It is located close to the current trading level, namely at 1,215 (weekly S1; 100-day SMA). This line is assumed to provide the yellow metal with a short-term bullish momentum, but the medium-term expectations are remaining firmly bearish.  

Traders' Sentiment 
Sentiment towards the precious metal is remaining strongly optimistic among SWFX traders, even despite the fact that a share of bullish positions decreased to 63%, down five percentage points from yesterday.
© Dukascopy Bank SA

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