- Shaw and Partners (based on Bloomberg)
Although gold confirmed a breakout by bouncing off of the new support at 1,191.50, the bullion does not seem to be in a hurry to advance further north. However, it seems that the price is forming a symmetrical triangle, and at the same time there is a strong support level at 1,210, which should be able to trigger a new wave of buying. On the other hand, a deeper decline will imply formation of a descending triangle, meaning the downside risks will substantially increase.
The share of short positions grows. While last week 68% of the SWFX traders were bears, today nearly three fourths of positions are to profit from gold's depreciation.