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XAU/USD violates May low, unable to close below 1,162

© Dukascopy Bank SA
"The technicals of the markets have deteriorated to such an extent that they will now likely drive precious prices lower, as the theme of a stronger dollar and the imminent rise in U.S. rates again dominates sentiment."
- INTL FCStone (based on CNBC)

Pair's Outlook
The precious metal slid for the third consecutive day last Friday and penetrated one of the most important supports, namely the May low at 1,169. Moreover, losses were extended down to the monthly S1 at 1,162, but this level managed to reverse gold and send it to the upside by the end of trading. At the moment daily technical studies are mixed; however, RSI and Stochastic are suggesting buying the metal. Meanwhile, the immediate resistance is located at 1,179 (weekly PP), followed by 20-day SMA at 1,190. 

Traders' Sentiment
Advantage of bulls over bears at the SWFX market decreased slightly from the three-week high reached on Friday. The total share of long opened positions lost two percentage points over the weekend, and it stays at 66% in the morning on Monday.  

© Dukascopy Bank SA


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