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Gold to take another shot at 55/100-day SMAs

© Dukascopy Bank SA
"If we do see a disappointing set of US data this week, the market's current 50% probability for a December rate hike is likely to come down dramatically. This does set the stage for a range of currencies and gold to potentially see a strong rally this week."
- IG Securities (based on WBP Online)

Pair's Outlook
On Friday the bullion decided to continue trading with somewhat bearish bias, but no decisive attempts to breach 55 and 100-day moving averages took place. In the morning on Monday, however, gold slumped down to 1,134 (Oct 6 low), but has recovered since then. We are waiting for additional attempts to violate this important support at 1,140/38. A success here would expose the lower Bollinger band and weekly S1 (1,126) first, which are followed by the Jul-Oct uptrend at 1,116. The latter level seems to be sustainable enough, in order to provide XAU/USD with another mid-term bullish momentum.

Traders' Sentiment
On Friday the share of SWFX bulls went up from 52% to 54%. However, market sentiment was once again completely unchanged in the past 72 hours.  

© Dukascopy Bank SA

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