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XAU/USD closes above 2014 low again

© Dukascopy Bank SA
"We think gold will likely come under further pressure as we near the Fed decision, as investors coalesce around the notion that the central bank will indeed move."
- INTL FCStone (based on CNBC)

Pair's Outlook
After spending one full trading day (Thursday) below the 2014 low, the bullion gained enough momentum in order to be pushed back above this crucial technical level. Moreover, on Friday gold managed to close above the 1,131 mark, meaning that there is a chance of a continuous recovery. Supported by short term technical studies, bulls are expected to prolong a recovery up to the 100-day SMA/monthly R1 at 1,156 soon, while the next resistance seems to be placed at 1,170 (recent lows). On the other hand, bears are likely to benefit from the long term negative outlook for gold.  

Traders' Sentiment
SWFX sentiment with respect to gold fell one extra percentage point over the weekend, as bulls and bears are currently holding 54% and 46% of all open positions, respectively.  

© Dukascopy Bank SA


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