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"We expect the momentum in the U.S. economy is still there and we will get that tone in (incoming) data and that will be reflected in a stronger U.S. dollar."
- Australia and New Zealand Bank (based on CNBC)
Pair's Outlook
Even though the precious metal has a rather volatile trading session on Monday, it managed to close just marginally above the day's opening mark. Initial bullion reaction, in turn, was caused by far worse than estimated US payrolls' numbers back on Friday, as Gold surged up to 1,224 on this news. However, the bullion returned back below the 55-day SMA and closed at 1,214 yesterday evening. Judging from daily technical indicators, we should observe a sideways development on Tuesday, while longer-term studies expect the bears to take over the leadership.
Traders' Sentiment
Sentiment towards the precious metal is optimistic among SWFX traders as the total share of bullish positions (65%, +1% from Friday) has a strong advantage over the bearish ones at the moment.
© Dukascopy Bank SA