- Mizuho Bank (based on CNBC)
The outlook is strongly bearish towards the bullion, as right now we are consolidating just below the recently broken major trend-line. Moreover, most of the daily and monthly technical indicators are pointing south. The current ceiling is at 1,110, and it is reinforced by the monthly S3. The nearest significant demand area is supposed to be at 1,070, where the weekly S1 merges with the Bollinger band, but this is highly unlikely to stop the oncoming sell-off. Instead, the targets are the 2008 and 2010 lows at 1,032 and at 1,045, respectively.
Despite poor performance of the commodity most of the traders remain long the gold. At the moment more than 70% of open positions are open to profit from an increase in price.