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    Gold determined to cross July low at 1,070

    © Dukascopy Bank SA
    "Despite popular opinion, gold's strongest periods of price appreciation over the past 50 years have coincided with rising interest rates. So I think a rise in rates could actually be beneficial for gold."
    - MineLife Pty Ltd. (based on Bloomberg)

    Pair's Outlook
    After moderate losses at the end of last week, gold opened substantially lower Monday morning. The bullion is setting eye on July low, which capped a decline twice during the previous working week. Bearish risks are also rising before today's announcement of the Fed. In case the 1,070 mark is crossed, the likelihood of monthly S2's (1,059) violation will increase. Trading volume remains high, meaning volatility is going to be uplifted. Meanwhile, in the aggregate, daily technical indicators are currently pointing downwards.

    Traders' Sentiment
    Market sentiment with respect to gold remains strongly positive for the moment, as more than 70% of SWFX traders are holding long positions. On Friday the bullish scenario was supported by 72% of traders.  

    © Dukascopy Bank SA

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