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    XAU/USD crashes 4% to touch 1,070 on Monday

    © Dukascopy Bank SA
    "Any increase in U.S. interest rates should further strengthen the dollar, prompting more fund outflows from commodities, metals and emerging-market assets."
    - Phillip Asset Management (based on Bloomberg)

    Pair's Outlook
    Friday losses of the bullion down to the 2014 low at 1,131 were completely overshadowed by developments on Monday morning. The metal dropped more than 4%, crossed the long-term downtrend line and touched the 1,071 mark, as positive US fundamentals caused higher activity among bears. At the moment is seems that the metal has returned above the downtrend at 1,109 and a bounce back is not off the table. Daily indicators are giving mixed signals, while some of them (Stochastic) suggest that gold is oversold and there is a good opportunity for buying the precious metal. 

    Traders' Sentiment
    A decrease in gold prices has significantly improved the sentiment of the SWFX market with respect to the metal. It remains strongly positive at the moment as bulls are enjoying a majority of 71% and bears are keeping only 29% of all open positions.  

    © Dukascopy Bank SA

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