Gold awaits bearish momentum from 200-day MA

Risks for gold are skewed to the downside, as the XAU/USD cross is hovering just around an extremely important resistance, namely 200-day SMA at 1,129. To consolidate above it, gold will also have to erase both the weekly R1 and Dec-Jan uptrend at 1,131/33. Such a scenario will become a vital positive signal for gold's future trading. However, a possible bearish impetus provided by 200-day SMA is likely to cause a sell-off down to the weekly pivot point (1,114), which is followed by a bunch of supports above 1,100. Meantime, daily indicators assume a mostly sideways trading over Wednesday. 

The gap between long and short traders dipped back to ten percentage points in the SWFX market, as the latter have regained 3% over Tuesday. At the moment as many as 55% of all open positions is bullish, leaving the bears in a minority of 45%.