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"Sellers took the chance to offload more gold futures on news that India will be looking at cutting down its gold imports by monetizing gold into financial assets such as gold-backed bonds."
- IG Asia Pte (based on Bloomberg)
Pair's Outlook
Stronger US Dollar and comments about possible additional market support in China pushed the safe-haven asset considerably to the south on Wednesday. Daily losses were the biggest since Aug 26 as the bullion dropped below the weekly S1 at 1,108, therefore falling more than $10 per ounce. Bulls should look for support from the major 1,100 level next, which is reinforced by weekly S2 and lower Bollinger band from below. Moreover, this area guards the next demand at 1,087 (monthly S1). Alongside, bearish sentiment is broadly supported by technical indicators on all time frames.
Traders' Sentiment
SWFX positive sentiment with respect to gold added five percentage points to 58% in course of the past 24 hours, to reach the highest level in 15 trading days.
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