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"Slightly weaker-than-expected U.S. inflation data overnight eased concerns that the Fed will raise interest rates this week, which helped support gold prices."
- Australia & New Zealand Banking Group (based on Bloomberg)
Pair's Outlook
The precious metal decided to act decisively one day before the Federal Reserve makes a decision on interest rates. With implied probability for Fed Funds being as low as 33%, gold appreciated amid weakness of the US Dollar. XAU/USD skyrocketed above the weekly pivot point and 20/55-day SMAs to close the trading session at 1,120. There are two scenarios for Thursday and both depend on the Fed decision. A rate hike will be able to return the metal even below the 1,100 level, while no change in rates may provide bulls with additional impetus to push the price up to the current September high at 1,148. Meanwhile, daily technical indicators are completely neutral at the moment.
Traders' Sentiment
The share of bulls reached 60% on Thursday (57% yesterday), the highest level in almost six weeks.
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