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"With the uncertainty in the global economy and the relatively dovish Fed minutes that were out yesterday, gold prices will still be supported above $1,200."
- OCBC Bank (based on CNBC)
Pair's Outlook
The daily chart has been showing mixed signals for several days in a row. Gold tested the third monthly resistance (1,209) yesterday, but ultimately closed the session below it. By succeeding here, the bulls will be in a position to prolong gains to 1,221 (weekly PP) over the next 24 hours. We cannot rule out the bullion will fail in the vicinity of this supply. An attempt of attacking October high (1,191) is possible, even though daily indicators tend to oppose bearish scenario. Below 1,190 would reassure us a correction is on the table.
Traders' Sentiment
We observed the bullish share of open positions bouncing off the lowest level in at least two years. It grew to a third from only 27% about 24 hours ago.
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