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"It is going to be foolish to be a gold bull right now. The gold bugs would have to wait for their day, but equally I don't think it is going to be a complete collapse from here either."
- Mizuho Bank (based on CNBC)
Pair's Outlook
The precious metal is trading in the mixed environment for a third consecutive day on Thursday, after a substantial drop took place back three days ago. It seems that gold is largely undecided on its short-term development. A decline below 1,088 (weekly S3) may trigger a sell-off down to the 2010 low at 1,044, as there are no technical levels to support gold this week any more. On the other hand, any possible gains of the bullion will be capped by resistances' cluster around 1,110. Therefore, the near-term outlook is cautious and focuses on the sideways development.
Traders' Sentiment
Sentiment of the SWFX market with respect to the yellow metal moved away from the 71%-29% distribution observed on Monday-Wednesday, as bulls have recently gained three percentage points, reached the 74% mark and pushed the bears' share down to 26%.
© Dukascopy Bank SA