© Dukascopy Bank SA
"Given that the possibility for a hike in September has diminished, I would think there is a higher probability for a December rate hike. And that does give a near-term support to gold prices."
- OCBC Bank (based on CNBC)
Pair's Outlook
Disappointing news surrounding US inflation and Fed meeting minutes provided the bullion with fresh growth momentum. As a result, XAU/USD skyrocketed above the most important short term resistance area, which was reinforced by weekly R1, 2014 low and 55-day SMA at 1,130/34. In case bulls manage to keep the price above this zone on Thursday, then our short-term outlook is going to become positive. There are still several bearish obstacles in place, while the closest supply is now located at 1,144/47 (Jul 17 high, weekly R2, upper Bollinger band).
Traders' Sentiment
SWFX sentiment with respect to gold picked up from its worst distribution between bulls and bears in more than 12 weeks, as now the former and latter are holding 55% and 45% of all open positions, accordingly.
© Dukascopy Bank SA