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"Gold will keep reacting to the U.S. data, and […] housing numbers gave a boost to the dollar and pushed gold down."
- Heraeus Metals New York LLC (based on Bloomberg)
Pair's Outlook
Growth issues in China are positively weighing on the price of gold. The bullion's bears have made an attempt to penetrate their nearest demand, but have failed to overcome the weekly pivot point and 20-day SMA at 1,110. As a result, it closed Tuesday trading above 1,115. Signals among daily technical indicators are fairly optimistic. Being that the area up to 1,131 is free of any technical levels, it is possible bulls will try to go as high as this mark by the end of this week. However, the mid-term outlook is bearish, as 55-day SMA and Bollinger band at 1,135 are unlikely to let bulls succeed.
Traders' Sentiment
SWFX sentiment with respect to the precious metal slumped yesterday to show the worst share of longs in around three months at just 52%.
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