© Dukascopy Bank SA
"We suspect that we will see a steady grind lower across most commodity complexes, including gold, largely attributable to the strength of the dollar and poor technicals that will only encourage more funds to further increase their short side exposure."
- INTL FCStone (based on CNBC)
Pair's Outlook
Gold ended trading flat on Tuesday, despite some attempts to rebound above the weekly pivot point at 1,092. Therefore, the price continues hovering around its lowest level in five years at 1,085. Both short and medium-term outlooks are not about to be changed from negative to neutral or positive. Daily technical indicators suggest the XAU/USD cross will suffer continuous losses, while bears seem to be preparing for this scenario in order to push the bullion down to Jul 20 low at 1,071.
Traders' Sentiment
Sentiment with respect to the precious metal worsened further in the past 24 hours. The portion of long open positions slid from 59% to 56%, and it remains at the lowest level in two months.
© Dukascopy Bank SA