- MKS Group (based on CNBC)
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 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 . 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.
The short traders have continued to gain ground throughout the weekend, as the share of bulls slipped further to reach 64% by Monday morning.