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"We are likely to see sideways trading until the FOMC."
- HSBC (based on CNBC)
Pair's Outlook
Gold has been inching lower since the beginning of this month; however, volatility and the pace of decline stood at quite low levels. On Friday the yellow metal touched the long-term trend-line just below 1,100, but recovered by the end of trading. We see the bullion hovering in sideways trend until Thursday's Fed interest rate decision, even though a slight bearish move is possible. This scenario is supported by daily, weekly and monthly technical indicators, but we assume the support area at 1,087-1,100 will be able to withstand initial bearish pressure.
Traders' Sentiment
SWFX positive sentiment with respect to gold was unchanged over the weekend as bullish traders are in the majority with 59% of all open positions.
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