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"Gold has been supported as of late as the ongoing theme over the several sessions has been economic global concerns, and that has been a driver behind that safe haven demand for gold."
- High Ridge Futures (based on CNBC)
Pair's Outlook
Three consecutive days of gains resulted in the testing of the weekly R1 back on Monday, but yesterday gold has been relatively quiet in its movements. As long as it keeps fluctuating above the weekly pivot (1,272.24), the outlook will maintain a mild positive bias. However, the risks are skewed to the downside ahead of the upcoming release of FOMC meeting minutes later today. However, a real negative shift in expectations will be possible, if the bullion slips under the monthly pivot and 20-day SMA, both placed around the 1,266 mark. Daily technical indicators are no longer giving bullish signals today.
Traders' Sentiment
Only three out of ten SWFX market participants are anticipating that the yellow metal will appreciate, while the rest of the board is forecasting losses in the foreseeable future. On a daily basis the number of long positions decreased by two percentage points.
© Dukascopy Bank SA