XAU/USD was rejected by resistance at 1,110

Gold intended to rebound on Tuesday, in order to erase at least a small part of losses that occurred in the beginning of this week. However, the nearest cluster of resistances remained intact and bulls were forced to capitulate around the 1,110 mark, where monthly S3 and weekly S2 merge with the long-term downtrend line. Weak performance of longs is underlying continuous strength of bearish market participants. They are aiming at the weekly S3 in the short-term, which is placed around 1,088. On the other hand, daily technical studies are still sending mixed signals to the market. 

Sentiment of the SWFX market with respect to the yellow metal remains flat for a third consecutive day, as bulls are enjoying a majority of 71% of all open positions, while bears are keeping only 29% of them.