Dukascopy - Analytics

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XAU/USD closes below demand zone at 1,125/31

© Dukascopy Bank SA
"Gold has been correlated a lot with stock markets in the past couple of days due to the fear globally. It's not surprising to see gold come back off as stocks stabilize."
- Phillip Futures (based on CNBC)

Pair's Outlook
Bearish correction and a third straight day of losses pushed the price of the bullion below the most important support area at 1,131/25, where the XAU/USD rate closed Wednesday evening. In case bears keep the cross there on Thursday, the near-term outlook is going to worsen substantially and the bearish trend will be estimated to continue. Short traders may focus on recent lows and the monthly pivot point at 1,113, which is followed by the long term downtrend/psychological level at 1,100. Meanwhile, daily technical studies are now giving signals to sell the precious metal.  

Traders' Sentiment
SWFX sentiment with respect to gold has been unchanged since yesterday, as bulls and bears are still holding 56% and 44% of all open positions, respectively.  

© Dukascopy Bank SA


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