Gold rout is strengthened by uplifted Dollar

With US markets reopening for shorter-than-usual session on Friday, the traders' focus was shifted back to the Fed December meeting and a busy new week. The bullion was sent down to 1,055 by Friday evening and it eventually confirmed the July low placed at 1,070. Now we are estimating additional losses for the yellow metal. The key support is located at 1,044 (2010 low), which will be the main bearish target before Friday US jobs data. Stronger losses should expose the next major demand at 1,031 (2008 high).  

Market sentiment with respect to gold remains strongly positive for the moment. More than 73% of SWFX traders are holding long positions, up one percentage point over the weekend. However, risks are skewed to the downside as gold seems to be overbought from the point of view of SWFX market participants.