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"The weaker euro should pressure precious metals lower but there may be an element of safety."
- Cinda Futures Co. (based on Bloomberg)
Pair's Outlook
XAU/USD recovered in price during the first trading day of 2015 on January 2. At first the cross tried to overcome a significant supply zone around $1,190, but failed to do that and closed just below the monthly PP at $1,188. However, in the early morning of Monday the bullion made the second and more successful attempt to cross the resistance area. If it manages to consolidate above it, a rise towards weekly R1 at $1,210 is possible in the short-term. Otherwise, Gold will plunge back to 2013 low.
Traders' Sentiment
Distribution between opened positions for buying and selling Gold is still remaining strongly positive and in favor of former, as bulls have a majority with 72% of all trades. It means that bullish majority has added six percentage points from January 2, up to the level seen five days ago.
© Dukascopy Bank SA