© Dukascopy Bank SA
"Gold is likely to remain fragile and vulnerable to the downside as investor sentiment is clearly negative."
- HSBC (based on CNBC)
Pair's Outlook
On Wednesday, the bullion copied the candlestick of Friday when it slumped by around one percentage point to reach the 1,057 mark. Yesterday it went further to penetrate the Nov 27 low at 1,052, while on Thursday this price has already managed to reach the weekly S1 at 1,046. Our expectations for the yellow metal are strongly negative for the medium term, but monetary policy easing from the ECB may support gold as the safe-haven metal. However, the US Dollar's bullishness will continue to weigh on prices and the bears are now aiming at the 2010 low at 1,044.
Traders' Sentiment
Market sentiment with respect to gold remains strongly positive for the moment. On Thursday around 71% of SWFX traders are holding long positions.
© Dukascopy Bank SA