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Support at 1,260 fails to hold XAU/USD's bearish pressure

© Dukascopy Bank SA
"The small bounce we are seeing today is probably because of the drop in equities but it may not hold."
- Lee Cheong Gold Dealers (based on CNBC)

Pair's Outlook
Gold has finally managed to pierce through a tough support zone around 1,260 on Friday as the precious metal declined considerably on strong labour market data from the US. As a result of that, five technical levels were crossed simultaneously during one bearish move at the end of last week. XAU/USD was only stopped by the 38.2% Fibonacci retracement at 1,229, which started to push Gold upwards on Monday. Being reinforced by 55-day SMA, it is expected that the bullion will manage to rebound towards 1,245 in the near term. 

Traders' Sentiment
Sentiment towards the precious metal is remaining strongly optimistic among SWFX traders, even though the share of bullish trades went down to 67% on Monday, compared with 73% before beginning of the weekend. 

© Dukascopy Bank SA


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