Gold spikes towards mid-November highs at 1,085
"If the dollar is unable to rally we may see further (short) squeezes towards $1,095-$1,100 in the short term leading into next week's FOMC meeting."
- MKS Group (based on CNBC)
Pair's Outlook
Disappointment from the ECB was fully priced into gold on Friday. The precious metal surged by around $20 per troy ounce. XAU/USD pierced through the July low to close just below the monthly pivot point at 1,085. We expect some selling pressure to be in place here. Unless the mentioned monthly resistance is crossed to the upside, the short term outlook for the bullion will remain bearish. Otherwise, a rally above 1,086 should allow for the extension of gains in the direction of 100/55-day SMAs at 1,116/18. However, this scenario looks increasingly unlikely by the monthly technicals.
Traders' Sentiment
The short traders have continued to gain ground throughout the weekend, as the share of bulls slipped further to reach 64% by Monday morning.
- MKS Group (based on CNBC)
Pair's Outlook
Disappointment from the ECB was fully priced into gold on Friday. The precious metal surged by around $20 per troy ounce. XAU/USD pierced through the July low to close just below the monthly pivot point at 1,085. We expect some selling pressure to be in place here. Unless the mentioned monthly resistance is crossed to the upside, the short term outlook for the bullion will remain bearish. Otherwise, a rally above 1,086 should allow for the extension of gains in the direction of 100/55-day SMAs at 1,116/18. However, this scenario looks increasingly unlikely by the monthly technicals.
Traders' Sentiment
The short traders have continued to gain ground throughout the weekend, as the share of bulls slipped further to reach 64% by Monday morning.