© Dukascopy Bank SA
"All people are really doing is hedging their bets a little bit, so the dollar comes off, gold goes up and rate expectations get kicked down the road a little bit."
- Gordon (based on Bloomberg)
Pair's Outlook
On Wednesday, Gold declined for an eight day in a row and traded near three-month lows. It seems that this week the bullion is following a trend of the Bollinger band which has a sharp downward slope at the moment. Currently, this line is also supported by the weekly S1 at 1,146 which is likely to prevent additional sell-offs for some period of time. Therefore, Gold is expected to commence a short-term recovery at the end of this week. Meanwhile, in case of a drop for ninth consecutive day, it would mark the longest streak of losses in 17 years.
Traders' Sentiment
Sentiment toward the precious metal is optimistic among SWFX traders as the total share of bullish positions (68%, no change from yesterday) has a strong advantage over the bearish ones at the moment.
© Dukascopy Bank SA