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"Gold is already pricing in diminished odds of a September rate hike."
- Phillip Futures (based on CNBC)
Pair's Outlook
The precious metal was trading downwards for a second consecutive day on Thursday as it plummeted below the majority of crucial supports in the 1,131-24 area. Among them 2014 low, 20-day SMA and monthly pivot point have already been breached. At the moment bears are focusing on 55-day SMA, the last support in the observed demand zone. Friday's performance will mainly depend on US labour market fundamentals as positive numbers may push gold down to recent lows at 1,117, which are followed by the weekly S1 at 1,110. Despite that, bulls are still hoping to reverse the negative trend and come back above 1,131.
Traders' Sentiment
SWFX sentiment with respect to gold recovered from the lowest level in 15 weeks, as bulls and bears are now holding 53% and 47% of all open positions, respectively.
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