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- Ayers Alliance Securities (based on Bloomberg)
Pair's Outlook
The price of gold managed to exceed its August maximum early this morning, but further appreciation of the yellow metal seems doubtful. During its latest rally XAU/USD did not encounter any notable resistances, and now it is facing a cluster formed by the 200-day SMA and monthly R2 among others. Moreover, the technical indicators are mixed, saying the momentum is too weak right now to pierce such an obstacle. Accordingly, we expect a sell-off in the nearest future, and there could be a decline down to 1,150 (monthly R1) before the price stabilises.
Traders' Sentiment
There is still no consensus among the SWFX market participants regarding the future of gold price. The current sentiment is exactly the same as yesterday: 52% of positions are long and 48% are short.
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