© Dukascopy Bank SA
"The bullion market's focus may shift to the upcoming FOMC two-day meeting on 27-28 January."
- HSBC (based on CNBC)
Pair's Outlook
On the first day of this week the precious metal lost around $15 per ounce and crossed a number of major demand areas during trading. At first, a support in face of weekly PP and 61.8% Fibonacci retracement was eliminated. The same happened with the monthly R2 at $1,283; therefore, gold managed to close at $1,281 in the night between Monday and Tuesday. If the bearish pressure persists in the near term, a violation of weekly S1/down-trend around $1,273 seems more than possible. In case of success, a decline may even extend down to 38.2% retracement.
Traders' Sentiment
Advantage of bulls over bears to buy the precious metal continues to stay close to 70% after a short-term fall in the beginning of the previous week, as the share of long positions among SWFX traders rose three percentage points from Monday to hit the 69% mark on Tuesday's morning.
© Dukascopy Bank SA