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"A delay in the Fed's rate hike expectations would be interpreted as bullion friendly."
- HSBC (based on CNBC)
Pair's Outlook
Even though gold still seems to be locked in the vicinity of 1,100 by showing no abrupt movements, yesterday it succeeded in pushing the daily candle to a new five-year low closing price of 1,084. Nonetheless, the most important target is placed at 1,071, where the Jul 20 low remains untouched. Bearish risks increase, as daily technical indicators are now giving signals to sell gold. Therefore, the mid-term outlook is pessimistic, as long as the yellow metal is trading at any levels below the long-term downtrend around 1,105.
Traders' Sentiment
As a post factum reaction to negative market movements, the positive sentiment with respect to the precious metal retreated considerably yesterday. The portion of long open positions dived from 72% to 59%, the lowest level in two months.
© Dukascopy Bank SA