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"U.S. dollar interest and option strikes at $1,150 should weigh upon gold over the next couple of days."
- MKS Group (based on CNBC)
Pair's Outlook
Even though the yellow metal's trading range was reaching $20 per ounce on Friday, neither bulls nor bears eventually managed to take control of the market. Gains were being extended above the 200-day SMA and Aug high, but no consolidation took place. The near term outlook is therefore undecided with respect to the bullion. Only a confident spike above 1,173 would refocus our attention back to the north. From the other side, bears are targeting the 1,158/55 zone (20-day SMA/weekly S1), which is followed by even more important demand at 1,147/46 (monthly R1/weekly S2).
Traders' Sentiment
SWFX market sentiment with respect to the precious metal remained broadly unchanged for the past three weeks. During the weekend the share of bulls was flat at 52%, meaning that their advantage still remains very negligible right now.
© Dukascopy Bank SA