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"We maintain the view that the third quarter is likely to be the weakest quarter for gold, given that we expect the Fed to start increasing rates in September, but the potential downside is likely to be limited."
- Barclays (based on CNBC)
Pair's Outlook
For the fifth consecutive day the yellow metal has been remaining broadly unchanged just above the 1,205 mark, even though it has made several attempts to exit from the vicinity of 1,203-1,212 range. The closest supports and resistances are keeping the bullion range bound. XAU/USD needs to consolidate either above 1,213 or below 1,203 to confirm its bullish or bearish intentions, respectively. Meanwhile, daily technical indicators are now sending strongly positive signals to buy gold, but medium and long-term ones are still staying pessimistic on the cross.
Traders' Sentiment
Advantage of bulls over bears at the SWFX market is remaining insignificant, even though the gap between them widened even more during the past 24 hours. The total share of bulls currently stays at 56% versus 44% for bears.
© Dukascopy Bank SA