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"This week sees the last FOMC meeting of the year and ahead of this, I suspect the markets will trend sideways to slightly lower as we await any mutterings of rate rises."
- Marex Spectron (based on MarketWatch)
Pair's Outlook
On Monday, Gold declined significantly and even breached the important support at $1,205. However, it seems the bearish momentum was spent completely when crossing this level, as XAU/USD was easily stopped by the next demand level at $1,193, represented by the weekly S1. As a result, we are expecting Gold to recover slightly on Tuesday, as this idea is also assumed by daily technical indicators.
Traders' Sentiment
During last 24 hours, the overall market sentiment on Gold jumped noticeably to reach its highest level in many weeks, as now long opened positions on the SWFX market account for 75% of all.
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