- HSBC (based on Reuters)
The precious metal failed to sustain the rally on Wednesday, as the price declined for the first time in five working days. Despite that, gold is still trading above a strong demand zone at 1,131-26 represented by the monthly pivot point, 2014 low, 20-day SMA and 55-day SMA. While bears are still estimated to take control of the market in the mid-term, they risk losing momentum while remaining above the mentioned cluster of supports. Therefore, gains are still possible in the near term as bulls are aiming at recent high of 1,147.
SWFX sentiment with respect to gold edged closer to the equilibrium for the first time in almost three months, as bulls and bears are currently holding 51% and 49% of all open positions, respectively.