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"As their prices fall, markets are turning risk-off. We also should expect some correction given the fast pace of recovery in various asset markets."
- Dai-ichi Life Research Institute (based on Reuters)
Pair's Outlook
Gold sank the most since July 2015 yesterday, by coming down from the 1,250 area in the beginning of daily trading to below 1,220 later. This is due to substantially higher Greenback in the wake of hawkish remarks by St. Louis Fed head James Bullard. On Wednesday, XAU/USD breached its primary support in face of the weekly S1 and the 23.6% Fibonacci retracement of Dec-Mar uptrend. Now the 1,205 mark is clearly exposed to bearish pressure, but here they will find the monthly pivot point, weekly S2 and the lower Bollinger band, meaning the task to penetrate all of them is going to be difficult at first attempt.
Traders' Sentiment
Many traders have decided to join the bullish side and raised the respective market portion to 42% from only 35% yesterday.
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