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"I don't think gold will go down further as $1,250 should be quite an important support and that should be held and physical interest should be coming in the market around there."
- Emori Capital Management (based on Bloomberg)
Pair's Outlook
Yesterday the precious metal performed a substantial sell-off on the back of growing American Dollar. Gold slumped below the weekly pivot point and 20-day SMA to close just above the first weekly support at 1,258.50; however, it managed to set a fresh May low. By successfully testing the weekly S1 the bullion will be in a position to attack the 55-day SMA, which lies at 1,250.36. On the other hand, technical signals are largely mixed and suspect there is room for an upside correction. Within the bearish channel, which emerged in the daily chart, a spike may extend as high as 1,279.
Traders' Sentiment
Only slightly more than 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 regained two percentage points.
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