- HSBC (based on CNBC)
Near-term outlook for gold is moderately . We see the formidable ahead of the bullion, represented by 100-day and Jan 8-20 downtrend at 1,104/08. Any close above here should trigger a rally, but the bulls are likely to struggle at 1,126/32 (monthly R3/ 200-day ). On the side, we would allow for a selloff down to 1,087 (20-day and monthly R1), followed by two-month uptrend and 55-day at 1,076. A drop below here will increase downside pressure on gold in the mid-term, but some support should be in place at 1,065 (monthly PP ) and at 1,046 (2015 low) later.
Advantage of long traders has been unchanged over the last 48 hours, as they continue holding about 55% of all open transactions in the SWFX market.