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Gold closed at Oct 2 low; 1,100 level to be next

© Dukascopy Bank SA
"We think that a December rate hike is more likely than not and an appropriate market reaction is a lightening up of risk, weaker commodities, higher yields and a firmer dollar."
- ANZ (based on CNBC)

Pair's Outlook
The bullion is now declining for six consecutive days. Since Wednesday of the previous week gold has lost around $60 per ounce in its price, while yesterday a sell-off was extended below the four-month trend-line. Bearish action was stopped by the Oct 2 low at 1,106. Our expectations are turning further to the downside. Market participants are ready to price in the upcoming US payrolls data on Friday, and positive outcome may send the yellow metal as low as 1,100 and even below this psychological mark. The long term support for gold is July low at 1,070.

Traders' Sentiment
As the precious metal continues to lose value, even more SWFX traders are fixing profit by closing short open positions. Yesterday the share of bulls has therefore risen from 50% to 54%, while bears are down to 46%.  

© Dukascopy Bank SA


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