Gold crashed to close below July low
"If you show me inflation, I'll show you a higher gold price."
- Evolution Mining Ltd. (based on CNBC)
Pair's Outlook
Precious metal confirmed the lowest level since year 2010 at 1,070 which was reached back in July. US CPI data pushed odds for a Fed rate hike strongly to the upside and decreased demand for the safe-haven metal. In case it consolidates below the mentioned level today, we should expect losses to extend below 1,059 (monthly S2) in the nearest future. Penetration of the latter mark will reopen the 2010 low at 1,044 and subsequently the 2008 high at 1,031. Bearish expectations are also relevant for the medium term, at least until the Fed's mid-December meeting.
Traders' Sentiment
Despite massive losses, market sentiment with respect to gold remains strongly positive for the moment, being that 72% of SWFX traders are holding long positions.
- Evolution Mining Ltd. (based on CNBC)
Pair's Outlook
Precious metal confirmed the lowest level since year 2010 at 1,070 which was reached back in July. US CPI data pushed odds for a Fed rate hike strongly to the upside and decreased demand for the safe-haven metal. In case it consolidates below the mentioned level today, we should expect losses to extend below 1,059 (monthly S2) in the nearest future. Penetration of the latter mark will reopen the 2010 low at 1,044 and subsequently the 2008 high at 1,031. Bearish expectations are also relevant for the medium term, at least until the Fed's mid-December meeting.
Traders' Sentiment
Despite massive losses, market sentiment with respect to gold remains strongly positive for the moment, being that 72% of SWFX traders are holding long positions.