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"Gold has to contend with lower oil prices, but the key risk remains the resumption of a dollar rally as investors wait for the Fed's next move."
- Nanhua Futures Co. (based on Bloomberg)
Pair's Outlook
The price of Gold was little changed in course of the trading day on Wednesday, as a small correction took place and followed a major gain of a day before. The bullion fell below the weekly R1 and Bollinger band to close the day at $1,226. Even though technical indicators on a daily time-frame are still pointing to the upside, we do not expect a move to the north and assume the pair will consolidate around $1,215 on Thursday.
Traders' Sentiment
Distribution between long and short opened positions for Gold versus the American dollar on the SWFX market remains broadly unchanged. In course of last 24 hours, the sentiment returned back to the level seen on Tuesday, as at the moment 59% of all positions are long on the yellow metal, compared to 58% a day ago.
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