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"We're still negative and target $985 in the short run."
- UBS Wealth Management (based on CNBC)
Pair's Outlook
Gold surged the most since Oct 14 on Thursday, by jumping from July low at 1,070 towards the weekly pivot point at 1,084. Today we may observe a consolidation above the latter mark. Closure above 1,090 will mean that the bullion managed to fully erase this week's losses. Short term rally is possible as traders see the Fed's December rate hike looming, but the pace of tightening will be slow. Gains should be contained by the 1,100 mark, where the monthly S1 is placed at the moment. However, next week's development may provide gold with another downward momentum.
Traders' Sentiment
Market sentiment with respect to gold remains strongly positive for the moment, being that 72% of SWFX traders are holding long positions, up from 71% yesterday.
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