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"Gold continues to trend lower with rising bets on a Fed rate hike in December. The recent trend looks entrenched with sentiment weakening in recent days."
- ANZ (based on CNBC)
Pair's Outlook
Gold's losing streak was prolonged through the seventh consecutive day on Thursday, already pricing in the approaching employment report from the world's largest economy. Key target for bears remains the 1,100 mark, which is strengthened by the monthly S1. Another long term support is offered by the Jul low at 1,070, but even stronger than expected US numbers are unlikely to push the bullion there immediately. Meanwhile, any disappointment may result in a spike up to the recently breached trend-line at 1,118 and additional gains are also possible up to 1,126 (weekly S1).
Traders' Sentiment
As the metal continues to lose value, even more SWFX traders are fixing profit by closing short open positions. Yesterday the share of bulls added one additional percentage point to 55%, while bears are down even deeper to 45%.
© Dukascopy Bank SA