Gold sees rising upside risks from 100-day SMA

Prices of gold continued to slide down for the sixth consecutive day on Wednesday. However, after probing the 1,218 mark, which is placed just above the weekly S2 and 100-day SMA, the bullion decided to pull back and finish the session at 1,223. Risks of an upward correction are growing, as the mid-term moving average line has a strong northbound slope and will likely weigh on the futures in the days to come. If XAU/USD regains the 1,234/35 level (weekly and monthly S1s), the probability of more gains will surge. At the same time, daily indicators remain mixed with respect to the yellow metal.  

The negative gap between SWFX bulls and bears fell further to reach the narrowest level in more than six weeks of just four percentage points. This is after the former gained additional market portion yesterday amid continuous gold price losses, up to 48% from 47%.