- MKS Group (based on CNBC)
Yesterday markets were encouraged by dovish comments made by ECB President Draghi, while equities and many rallied. Gold has therefore closed below the first target, namely monthly R3 at 1,209. Tuesday morning we are observing more selling pressure, which is pushing prices towards the October 2015 high at 1,191. By violating this initial daily support for today, the bullion will be in a good position to plummet down to the Feb 10 low at 1,181.50, followed by the bunch of demand levels between 1,170 and 1,165 (Aug 2015 high; monthly R2; 20-day ).
Monday has seen a sharp plunge in the total number of long open positions in the SWFX market. The share went down to 31% from 44%, which is the lowest level we have seen while analysing this commodity.