Gold to plunge below 1,235 in volatile trading

FX:XAUUSD   Gold / U.S. Dollar
93 0 1
"Particularly in the U.S., this slow normalization of the economy should result in a grind higher in real interest rates and cap the attractiveness of precious metals as an investment."
- BMI Research (based on CNBC)

Pair's Outlook
The bullion's activity is very high this Wednesday morning. Following the bullish failure to push prices anywhere beyond the 1,250 level, today we are seeing a heavy selling pressure. The most immediate support is the two-month uptrend located at 1,235; however, we suspect that formidable bearish sentiment will lead to a testing of the 1,230 area that consists of the weekly S1 and 23.6% Fibonacci retracement of Dec-Mar uptrend. Closure under 1,227 will signify that gold             is ready to tackle the 1,205 mark where the monthly pivot point merges with the second weekly demand line.

Traders' Sentiment
Tuesday has seen an additional improvement in terms of the bullish side of SWFX positions. It added one more percent to increase up to 35% by the March 23 morning.
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