- Shandong Gold Group (based on CNBC)
A continuous move away from fixed income and safe-haven assets is putting more pressure on gold prices. They slid down on Tuesday, by nearing one of the most important support clusters at 1,084/80 represented by the monthly R1 and 55/20-day SMAs. On Wednesday we expect these levels to be tested, but success is not guaranteed for the moment. Given that daily technical indicators estimate a rebound, we cannot rule out such a scenario in the next 24 hours. However, in case XAU/USD closes below 55-day the focus will switch to the monthly at 1,065.
After three days of stability, the distribution between long and short market participants began narrowing again, as the share of the bulls decreased minimally by one percentage point to 54% from 55%.