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"Since gold moves with such a strong, inverse relationship to interest rates, the 9-1 decision to let rates lie today was an obvious positive for the yellow metal."
- Libertas Wealth Management Group (based on MarketWatch)
Pair's Outlook
As expected, gold prices advanced after the Fed decision to maintain the current stance of monetary policy. However, a daily rise was smaller than initially anticipated as bulls failed to penetrate the most crucial resistance represented by the 2014 low at 1,131. A failure to consolidate above this mark for a second consecutive time may lead to a sell-off in the nearest future. Bears are aiming at the 55-day SMA right now, which is opening doors towards the 1,100 psychological level. On the contrary, daily studies are neutral and we may also observe the sideways trading at the end of this working week.
Traders' Sentiment
SWFX sentiment with respect to gold is broadly bullish at the moment, even though the share of longs lost one percentage point to 59% yesterday.
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