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"The key factor that underpins the bearish view for gold is very much the Fed rate hike expectation and that possibility is not off the table."
- OCBC Bank (based on CNBC)
Pair's Outlook
XAU/USD has been losing value for a third consecutive day on Wednesday. A decline started Monday, when the bullion received bearish impetus from the 100-day SMA at 1,160. At the moment the price is fluctuating around 1,136, namely five dollars above a major demand area composed of 2014 low, 55-day SMA, 20-day SMA ad weekly S1. We would allow a drop below this cluster of supports, which will confirm the bullion entering a correction phase. Nonetheless, daily indicators assume the metal will receive positive momentum from the mentioned bunch of technical levels.
Traders' Sentiment
SWFX sentiment with respect to gold declined one percentage point from yesterday, as bulls and bears are currently holding 56% and 44% of all open positions, accordingly.
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