© Dukascopy Bank SA
"The selling (in gold) will likely continue going into Wednesday's session, especially if we see another round of strong buying set in over global equity markets."
- INTL FCStone (based on CNBC)
Pair's Outlook
Growing risk appetite across global stock markets pushed investment out of the safe haven metal, which bounced off daily highs at 1,248 yesterday. The February uptrend, currently at 1,222, is now at risk of being tested on Wednesday. Bearish success here offers the opportunity to send XAU/USD down to the 1,205/1,199 support cluster that consists of monthly PP, 20-day SMA and weekly S1. Moreover, there we have another demand in face of the January uptrend. However, daily indicators remain long on gold. If the weekly PP (1,225) holds ground, firstly the bulls will have to test recent peaks near 1,250.
Traders' Sentiment
Over the past 24 hours the bulls have gained 19 pp to push distribution between them and bearish market participants to a completely neutral level of 50-50%.
© Dukascopy Bank SA