Gold prolongs the slump to eight days

Current eight-day long losing streak of gold prices is the longest one since early November. The bulls have worked hard to revive on Thursday. They managed to send XAU/USD to the 1,234 level, but after facing the weekly S1 there the bullion crashed again the close the daily session as low as 1,219. On Friday morning we are observing more weakness, with the 1,212 marker tested shortly. If the 100-day SMA together with the weekly S2 (1,216.01/47) are out of power to provide sufficient demand on Friday, then we are highly likely to continue seeing gold's drop in the direction of the March low at 1,207.87.  

The negative gap between SWFX bulls and bears is at the narrowest level in more than six weeks of just four percentage points. Therefore, the longs continue maintaining 48% of all open positions for a second consecutive day, with the shorts keeping 52% of them.