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"We are quite concerned that the Fed's message has come through as relatively muddled this past week given that most governors have expressed a willingness to raise rates by year-end."
- INTL FCStone (based on CNBC)
Pair's Outlook
Bears attempted to gain control over the market, but they managed to push the price of gold only below the first important support, namely the 50% Fibonacci retracement of Aug-Sep downtrend at 1,134. The closest demand zone is therefore remaining intact as 2014 low and weekly/monthly pivot points are ready to provide the bullion with positive momentum in the nearest future. Bulls are still aiming at 100-day SMA/61.8% retracement at 1,141/42, but any failures there may trigger losses and send XAU/USD even below 1,124 over the medium-term.
Traders' Sentiment
SWFX sentiment with respect to gold is broadly bullish at the moment, even though the share of longs decreased by one extra percentage point to 56% from yesterday.
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