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"The near-term outlook for gold looks weak, with the path of least resistance lower."
- HSBC (based on CNBC)
Pair's Outlook
It seems that three strong resistance levels came together in order to push Gold to the downside. They succeeded in doing that, and the precious metal retreated towards the demand area at 1,196 (weekly PP and 20-day SMA). The bullion is now expected to test strength of this zone on Thursday. In case of a penetration, we will most likely observe a further drop down to 1,183 where weekly S1 and monthly PP have their location. On the other hand, if bulls resist current pressure of shorts, Gold may rebound moderately above 1,200.
Traders' Sentiment
Sentiment towards the precious metal is optimistic among SWFX traders as the total share of bullish positions (66%, no change from yesterday) has a strong advantage over the bearish ones at the moment.
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