Gold to fall back below 200-day SMA

XAU/USD held above the crucial technical level on Friday, namely the 200-day SMA at 1,175. However, in the beginning of the new working week the bullion is losing steam and is highly likely to drop below this important support. This fact may embark on a new bearish trend in the foreseeable future, but we should see the Aug high at 1,170 being violated first, before the final outlook decision is made. Bulls' inability to reverse losses should reopen the 1,155/45 zone for bears, where weekly S1, 20-day SMA and monthly R1 are presently located.

The total number of long and short open positions in the SWFX market remained flat in the past 72 hours. The former and the latter are still holding 51% and 49% of them, respectively.