© Dukascopy Bank SA
"Gold should continue to hold its value during the current market turbulence, however a material surge higher is unlikely as participants find liquidity by selling all asset classes, including precious metals."
- MKS Group (based on CNBC)
Pair's Outlook
Gold had been benefiting from its safe-haven status last week, as stock markets continued to decline around the world. However, falling oil prices are driving inflation outlook lower, which is a fundamental bearish factor for the bullion. Therefore, market failed to prevent losses on Monday and XAU/USD slipped below 100-day SMA and monthly R1 at 1,156/59. In case bulls are unable to reverse the bearish trend today, the metal's outlook is increasingly likely to become bearish again. However, daily indicators are now slightly more positive with respect to gold, hoping that the longs will make a breakthrough.
Traders' Sentiment
SWFX sentiment with respect to gold has been flat in course of the past 24 hours, as bulls and bears are still holding 57% and 43% of all open positions, accordingly.
© Dukascopy Bank SA