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"If (Yellen) reinforces recent sentiment expressed by some of governors, we could see further dollar strengthening and corresponding pressure on gold."
- INTL FCStone (based on CNBC)
Pair's Outlook
On Monday the bullion was turbulent, as initially the bears led a decline below 1,210. However, all losses were erased by the end of the day, with falling Greenback sending gold back above 1,220. Over the next 24 hours, any spikes to the upside or dips lower can be wide. This is because the closest resistance is placed as far as 1,227 and the nearest support line in the monthly pivot point at 1,205. Aggregate daily indicators suspect XAU/USD will retreat today, but only a decrease below the 55-day SMA at 1,193 will, with a decent level of confidence, confirm bearish intentions of the market.
Traders' Sentiment
On Tuesday morning bullish positions have been held by 47% of SWFX traders, which proclaims a surge from 44% just one day ago. This is the most positive sentiment with respect to the yellow metal in almost four weeks.
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