© Dukascopy Bank SA
"Gold's appeal as a safe-haven asset, clearly, has not really shone through in the past half-week. Not aiding gold's cause has been a rapidly strengthening dollar."
- Phillip Futures (based on CNBC)
Pair's Outlook
At the moment XAU/USD is falling further in the direction of the nearest support, which is placed at 1,162 (Jun 5 low, weekly S1 and lower Bollinger band). The cross has already been losing value for a fourth consecutive day, and the trend is likely to persist in the near-term. However, a decline is not guaranteed in the medium-term, according to the weekly technical indicators. A local bottom can be reached around the mentioned demand zone, which also merges with the lower boundary of the Jun 19-Jul 2 bearish channel.
Traders' Sentiment
The total share of long open trades at the SWFX market experienced a marginal fall from yesterday, but it remains solid at 68%, while bears are in the minority with just 32% of all trades. Bullish share on the market decreased two additional percentage points in the past 24 hours.
© Dukascopy Bank SA