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"With the Shanghai Gold Exchange closed, gold may be vulnerable to further selling pressures and is close to testing the psychological $1,200 level."
- HSBC (based on CNBC)
Pair's Outlook
A major resistance for Gold provided by the weekly pivot point, 38.2% Fibo and 55-day SMA managed to send the metal considerably downwards on Tuesday. Over the trading day it lost more than $25 per ounce and closed just above the weekly S2 at 1,204. Moreover, one of the main support areas at 1,215 (100-day SMA, weekly S1) have also been erased. However, despite still bearish short-term technical indicators, a continuation of the down-trend is unlikely on Wednesday, while the closest demand is strengthened by round level at 1,200 and monthly S1 at 1,198.
Traders' Sentiment
Sentiment towards the precious metal is remaining strongly optimistic among SWFX traders, while the total share of long opened positions advanced two percentage points from yesterday up to 71%.
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