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"Persistent dollar strength will hamper the precious complex, whilst the timing of the first Fed interest rate rise will also add to the uncertainty and continued volatility.'
- MKS Group (based on CNBC)
Pair's Outlook
Second bearish attempt to send the price of gold below the 2014 low turned to be much more successful. The bullion has also failed at the monthly/weekly pivot points and the 38.2% Fibonacci retracement of the Aug-Sep downtrend. Therefore, yesterday the metal consolidated at the 1,124 mark, which is also the location of 20-day SMA. A decline below this line will refocus our attention on the 23.6% retracement and 55-day SMA at 1,116. Indicators on the daily time frame, however, are completely neutral for the time being.
Traders' Sentiment
SWFX sentiment with respect to gold remains bullish on Wednesday morning, but the share of longs decreased one extra percentage point to 55% from yesterday. It puts a total decrease at five percentage points for the period started Thursday of the last week.
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