- BMI Research, a unit of Fitch Group (based on Bloomberg)
Gold was fully unchanged in value yesterday, with both bulls and bears failing to establish a lead after minutes of the latest FOMC meeting. Today we see the Dollar weakening and this situation is benefiting the precious metal. Still, bulls are far away from putting gold on a stable path of recovery. Only a climb above 1,100 is going to refocus attention back on the northern side. Short traders, however, are getting ready to push XAU/USD below the July low at 1,070 and we expect this happening in the nearest future. Success here would allow for losses down to 2010 low at 1,044.
Market sentiment with respect to gold remains strongly positive for the moment, being that 71% of SWFX traders are holding long positions, down from 72% yesterday.