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"We believe this is a consolidation situation with only a breach of $1,168 bringing in fresh buying."
- ScotiaMocatta (based on CNBC)
Pair's Outlook
Gold attempted to advance higher on Tuesday, but any gains were capped by the weekly pivot point at 1,140. In case bulls and unable to push the price above this resistance of medium difficulty, then a decline is going to be the main scenario in the near term. However, bears will have other obstacles to face on their way down including monthly pivot point, 55-day SMA and 2014 low in the range of 1,131-26. In case of success, we see the downtrend extending down to 1,117 (Aug 26). However, this development will largely depend on today's US fundamentals, namely the ADP employment change and factory orders.
Traders' Sentiment
SWFX sentiment with respect to gold fell below 54% for the first time in two weeks, as bulls and bears are currently holding 53% and 47% of all open positions, respectively.
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