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"While a delay in rate hike expectations may ease some of the near-term pressure on gold, it does not mean prices would rally from current levels given expectations that the Fed will eventually hike rates."
- HSBC (based on CNBC)
Pair's Outlook
Volatility of gold prices was one of the highest in six trading days on Friday, but daily changes were far smaller than some massive movements registered earlier in July. Moreover, neither bulls nor bears benefited from daily trading, which resulted in a standoff. With all technical studies pointing on flat development, it is quite likely that the bullion will decide to wait for another momentum and trade sideways for some time. Moreover, there are dense resistance and support clusters being created at 1,100 and 1,080, respectively.
Traders' Sentiment
SWFX sentiment with respect to the precious metal added two extra percentage points over the weekend, up from 59% to 61%.
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