Gold pierced through weekly S1 to park near 1,060

Gold traded downwards on Wednesday, as declining commodities across the board failed to keep the yellow metal any near the green territory. US Dollar rallied, while gold prices dipped down to the 1,060 mark. After it received some bearish support from the 20-day SMA, the metal decided to ignore the weekly S1 and went through this technical level with ease. Now the focus is shifting to the weekly S2, which is reinforced by the lower Bollinger band at 1,055/54. Here we can observe some buoyancy for gold, but the mid-term outlook still remains largely negative.  

Following a relatively heavy gold price plunge in the past 24 hours, some traders changed hands and closed their bearish positions to expect a rebound today. Now around 56% of all SWFX market participants are holding long positions, up from 54% yesterday.