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"Increasing chances of a rate hike in June are likely to continue to weigh on gold."
- ANZ Research (based on Wall Street Journal)
Pair's Outlook
The bullion posted the most bearish trading session since March 23 yesterday, by losing about $22 from its day's open price. It was falling down until the very end of the US session and closed without any bullish attempt to recover the losses at the 1,226 mark. XAU/USD confirmed the closest monthly/weekly S1 supports at 1,235/34 and thus refocused attention to the next bunch of demand levels near 1,218/13. Here gold will face the lower Bollinger band, weekly S2 and upward-sloping 100-day SMA that should be able to hold initial bearish test.
Traders' Sentiment
The negative gap between SWFX bulls and bears fell to the narrowest level in more than six weeks of just six percentage points. This is after the former gained market portion yesterday amid massive gold price losses, up to 47% from 41%.
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