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"It seems all over the world, the economy is weak, also within China and India, so the potential market for consumers has also declined."
- Heraeus Precious Metals (based on CNBC)
Pair's Outlook
With markets expecting to see rising US CPI numbers later on Tuesday, the bullion continued to lose steam yesterday. Traders are selling-off the precious metal on the back of stronger US Dollar. The spot price is just seven dollars away from Jul low at 1,070. Positive American data may push gold below this mark, with the next bearish target being placed at 1,059 (monthly S2). On the other hand, bullish traders intend to recover back towards the 1,100 zone. Trading volume rose to the highest level since Oct 30, which underlines increasing market turbulence as Fed's December meeting approaches.
Traders' Sentiment
Market sentiment with respect to gold remains strongly positive for the moment, being that 71% of SWFX traders are holding long positions.
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