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"The US data has been a lot weaker than expected, which has calmed investors who had been expecting a June or July rate hike."
- Capital Economics (based on WBP Online)
Pair's Outlook
On Monday, XAU/USD registered only insignificant net price changes. Initially, Gold intended to continue growing and it reached the highest level since Feb 17 just above 1,230. However, bears kept the bullion below the Bollinger band and forced the metal to finish trading at 1,225. In case of short-term weakness, bulls will target 1,213 (monthly R1, 200-day SMA) in order to gain back the positive momentum. Meanwhile, 100 and 200-day SMAs are going to cross each other soon, and this fact should underline XAU/USD's medium-term bullishness.
Traders' Sentiment
Advantage of bulls over bears at the SWFX market decreased significantly during the past three days, and now the gap between them amounts to just two percentage points. The total share of bulls stays at 51% versus 49% for bears.
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