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"Gold's reign as the top performing asset […] is largely supported by safe haven demand, and buying-interest into gold once again should not be discounted, especially if global growth sentiment turns south into the year
- OCBC (based on CNBC)
Pair's Outlook
The bullion switched into the wait-and-see mode, before the Federal Reserve is getting ready to announce its monetary policy decision later on Wednesday. Gold is backed by the first weekly support at 1,230 for the moment. There is a risk of considerable Dollar's appreciation, in case the FOMC outcome is hawkish. Another support zone, which is capable of limiting a selloff in gold prices, is placed quite away from the spot at 1,210/05. While aggregate daily technical indicators are mixed, the bullish case is not off the table. Any rebound is going to pay attention to the weekly pivot point and Feb high at 1,257/63.
Traders' Sentiment
Difference between the total percentage of SWFX bearish and bullish positions consolidated at ten points yesterday. SWFX traders seem to be refraining from changing hands ahead of the Fed's meeting, due to uncertainty over decisions they are going to make.
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