- Heraeus Precious Metals (based on CNBC)
With markets expecting to see rising US CPI numbers later on Tuesday, the bullion continued to lose steam yesterday. Traders are selling-off the precious metal on the back of stronger US Dollar . The spot price is just seven dollars away from Jul low at 1,070. Positive American data may push gold below this mark, with the next target being placed at 1,059 (monthly S2). On the other hand, traders intend to recover back towards the 1,100 zone. Trading rose to the highest level since Oct 30, which underlines increasing market turbulence as Fed's December meeting approaches.
Market sentiment with respect to gold remains strongly positive for the moment, being that 71% of SWFX traders are holding long positions.