- Sydney-based precious metals trader (based on CNBC)
The bullion was literally unchanged in price on Thursday, which is explained by US Bank Holiday and low in both commodity and FX markets. Price opened and closed just above July low at 1,070. On Friday morning we see some downward activity taking place, but we expect the overall daily trading range to stay quite narrow. In any case, gold is required to trade below July low for two consecutive days, in order to confirm this support. Trading crashed 2.5 times since last week's peak and will support light trading in the near term.
Market sentiment with respect to gold remains strongly positive for the moment. More than 72% of SWFX traders are holding long positions, no change in the past 24 hours. However, risks are skewed to the downside as gold seems to be overbought.