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"There is more of a positive tone to rhetoric on the gold price outlook that may effect prices, but eventually it is the U.S. dollar that is the key driver."
- Argonaut Securities in Hong Kong (based on CNBC)
Pair's Outlook
After testing the most immediate daily resistance line, which is represented by the weekly R1 at 1,287.68, the bullion was forced to erase these intraday gains amid growing risk appetite over the US equity session on Monday. XAU/USD dived down to the weekly pivot at 1,272.24, where it is estimated to get a second chance to appreciate on May 17. Successful tackling of the weekly R1 would reestablish the possibility of a fresh rally beyond the psychological 1,300 marker. Meanwhile, bullish scenario is backed both by daily technical studies and a heavy support at 1,266 (monthly PP; 20-day SMA).
Traders' Sentiment
The SWFX market remains deeply biased in favour of the bears, as 68% of traders are expecting that the precious metal will continue tumbling. This is down slightly from the 11-week bearish peak of 74% we have observed 24 hours ago.
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