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XAU/USD breaches $1,270 from second attempt

© Dukascopy Bank SA
"Appetite for risk now appears higher and that is spurring some rotation of funds away from the safe havens in the yen and gold to riskier assets such as equities and the euro."
- Phillip Futures (based on CNBC)

Pair's Outlook
Despite a failure to violate the support line represented by weekly PP at $1,278 for the first time, Gold managed to do so with the second attempt on Tuesday. Moreover, a decline of XAU/USD cross continued and it plunged down to the 50% Fibonacci retracement around $1,261. This level, however, is strengthened by another cluster of supports which are unlikely to give up easily and let bears go beyond $1,250. Taking it into account, the short-term outlook for the bullion is moderately bullish at the moment. 

Traders' Sentiment
Sentiment towards the precious metal is remaining positive among SWFX traders, even though the share of bullish deals is currently staying at 63%, which means a decline of 12% in course of last two trading days. 

© Dukascopy Bank SA


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