Dukascopy - Analytics


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    Gold closes below Aug high on stronger Dollar

    © Dukascopy Bank SA
    "Our base case remains for higher U.S. real rates and lower gold prices, albeit with there being risks that the gold price weakness is pushed out further should the Fed surprise us and remain on hold in December."
    - Goldman Sachs (based on CNBC)

    Pair's Outlook
    From the third attempt in three days the bullion has finally closed the daily trading below one of the most important supports, namely the Aug high at 1,170. The short term expectations are therefore shifting considerable to the downside right now as the sell-off may extend down to the 1,155 demand zone soon. There the price is going to meet both 20-day SMA and weekly S1. Additional support is offered by the monthly R1 at 1,147. Meanwhile, a yesterday's decline improved the aggregate signal from daily technical indicators, which changed from neutral to moderately bullish.

    Traders' Sentiment
    SWFX market sentiment with respect to the precious metal remained broadly unchanged for the past three weeks. Yesterday the bullish share was flat at 52%, and an advantage remains very negligible right now.  

    © Dukascopy Bank SA

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