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"Technically gold looks really good and should be a little bit higher, as physical demand remains very robust."
- Ayers Alliance Securities (based on Bloomberg)
Pair's Outlook
It seems that 20-day SMA managed to provide the bullion with enough bullish momentum on Wednesday. Gold was sent back into the dense area of technical levels including weekly/monthly pivot points and the 2014 low at 1,127/31. Despite bearish risks, the price is moving further upwards in the morning on Thursday. In case it consolidates above 1,135 (50% retracement of Aug-Sep downtrend) and 1,141 (recent highs), then we would allow for a continuous recovery up to the 1,150 region, where upper Bollinger band merges with the 100-day SMA.
Traders' Sentiment
SWFX sentiment with respect to gold remains just slightly positive as the share of longs dropped from 55% to 53% in the past 24 hours.
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