Dukascopy - Analytics


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    Gold keeps trading in red, ready to test 1,105

    © Dukascopy Bank SA
    "Our call for gold prices to touch $1,050 at year-end is still very much intact on the grounds for a Fed fund rate hike before the year is up."
    - OCBC (based on CNBC)

    Pair's Outlook
    On Thursday the yellow metal posted a minor decrease in price, but overall daily losses were extended to the fifth day in a row. The only bullish attempt to return back above the 23.6% retracement and 55-day SMA was strongly rejected. We expect to see the 1,105 level (weekly S2) being tested on Friday, and a lot will depend on the US jobs report later in the day. Positive numbers may trigger losses down to the 1,100 mark, which is guarded by the Sep low, lower Bollinger band and the long term downtrend line. Failure here would allow for a drop down to the monthly S1 at 1,089.

    Traders' Sentiment
    Distribution between bullish and bearish market participants at the SWFX market continued to improve in favour of the former. The total share of the longs jumped four percentage points yesterday, up from 52% to 56%.

    © Dukascopy Bank SA

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