Forecast and Technical Analysis of the Gold Futures on April 14, 2016

Tags: 

Gold is losing ground for three days

Pair's Outlook
After a relatively calm Tuesday, the bullion commenced a major bounce from three-week highs yesterday and closed the US session around the monthly pivot point (1,241.50). However, a selloff has continued this morning on the back of growing risk appetite worldwide. Now the weekly pivot is under bearish pressure, but the bulls hope the 55-day SMA (1,223.48) along with the weekly S1 (1,221.33) will be capable of limiting those negative changes. Otherwise, we would not rule out a slump towards the March low at 1,208.06.

Forecast and Technical Analysis of the Gold Futures on April 14, 2016

"Definitely the boost in the dollar and strength in equities will put pressure on the gold market."
- RJO Futures (based on Bloomberg)

Traders' Sentiment
A continuous plunge in gold prices is provoking a closure of short positions in the SWFX market. Over Wednesday the percentage of bearish trades dipped from 66% to 63%. However, the majority is solid and only a small share of market participants, at least for now, suspects the stance should be changed from bearish to bullish.

Forecast and Technical Analysis of the Gold Futures on April 14, 2016