Gold treads water around July low

Yesterday the bullion was pushed below July low at 1,070. However, on Tuesday gold observes another round of purchases, which try to raise the price above the above mentioned technical level. Therefore, current short term estimates remains rather uncertain. Any gains are likely to be capped by the weekly pivot point at 1,080. Medium term forecasts have a more pronounced bearish bias and the short traders are eventually aiming at breaching the five-year low at 1,044.

Market sentiment with respect to gold remains strongly positive for the moment and around 70% of SWFX traders are holding long positions. However, risks are skewed to the downside as there are more opportunities and much more space for new bearish positions to be opened.