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"The overriding theme for the next 12 months for precious metals is that there's going to be a lot more liquidity that's being added to the system via the ECB and the U.S. economy is going to have to continue to outperform in order to attract investment dollars."
- ANZ Banking Group (based on CNBC)
Pair's Outlook
The most significant decline of XAU/USD cross since December 15 took place on Thursday of this week. Due to strong US fundamentals, Gold dropped around $30 per ounce to fall below the 50% Fibonacci retracement at $1,260. Total daily losses, in turn, were only stopped by 55-day SMA around $1,252 and the precious metal rebounded slightly to close the trading at $1,257. Following that, daily technical indicators stopped giving bullish signals on Gold as they are now staying neutral with respect to metal's perspectives.
Traders' Sentiment
Sentiment towards the precious metal is remaining strongly positive among SWFX traders, as share of bullish trades is currently staying at 73%, without any changes from yesterday.
© Dukascopy Bank SA