Dukascopy - Analytics


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    Gold struggles to stay afloat

    © Dukascopy Bank SA
    "The gold trade right now is really about the Fed. With the numbers deteriorating as they are, it's getting less likely there will be a Fed rate increase this year. The fundamentals, along with the technicals, are all pointing to a bullish close for gold at the end of the year."
    - RJO Futures (based on Bloomberg) 

    Pair's Outlook 
    It is a critical moment for gold, as the precious metal is fighting to stay above the 200-day SMA in order to confirm a strong bullish signal and establish a new support area near 1,176. Yesterday, the monthly R2 at 1,181 failed to underpin the price, and the technical indicators except for a few studies refuse to support a bullish scenario. Still, the risks are skewed to the upside. If the bullion manages to consolidate atop the long-term moving average during the next few days, the first target will be the monthly R3 at 1,205, while in the longer-term perspective we will likely see a test of the key resistance at 1,230. 

    Traders' Sentiment 
    SWFX market participants remain almost equally divided between the bulls and bears. At the moment 51% of open positions are long and 49% are accordingly short.
    © Dukascopy Bank SA

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