XAU/USD below 100-day SMA despite volatility

Uplifted volatility of gold prices failed to push the bullion in any direction on Friday, as it stood broadly flat below 100-day SMA at 1,159. This line represents the nearest support for the precious metal, being strengthened by monthly R1 from below. However, in case bears decide to act decisively, they should aim at 55-day SMA/2014 low, where short traders failed to prevent a rally on Aug 19-20. Meanwhile, bullish short term goal is located in the range between 1,178 (2013 low) and 1,187 (200-day SMA). Technical indicators are in turn showing mixed signals on all time frames.

SWFX sentiment with respect to gold worsened over the weekend, as now bulls and bears are holding 57% and 43% of all open positions, accordingly. This demonstrates a decrease of one percentage point for the longs.