- HSBC (based on CNBC)
A rally, which commenced last Friday, has been successfully prolonged during the past 24 hours. Gold advanced above the July low and 20-day to close slightly below the weekly R1 at 1,077. Now the focus is shifting to the monthly at 1,086, which is strengthened by the upper and the current December high. Moreover, daily technical indicators are now expecting the bullion to climb. However, risks are created by the 55-day (1,105), which has recently managed to cross another moving average on the longer-term 100-day time frame.
The SWFX market participants continued to fix profit from the gains gold has showed on Friday and Monday. As a result of that, the percentage of long traders sank from 57% to 56% yesterday, the lowest level in six trading weeks.