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"Gold was choppy following the U.S. FOMC minutes that did not give a clear indication of whether or not the Fed is poised to raise interest rates this year."
- ScotiaMocatta (based on CNBC)
Pair's Outlook
From Tuesday till Thursday the precious metal was unable to penetrate the monthly R1 at 1,147. This resistance is strengthened by the 50% Fibonacci retracement of the May-July 2015 downtrend at 1,151. Following a bullish bounce back from yesterday's lows around 1,138, we expect the bullion to continue attacking the mentioned monthly resistance line. A rise above 1,151 would allow for a climb up to 1,155 in the near-term and 1,170 during the next trading week. On the other hand, any losses are likely to be limited by a powerful demand at 1,133/30.
Traders' Sentiment
This week the share of SWFX bullish open positions has remained largely stable, while yesterday their portion was fully unchanged at 53%.
© Dukascopy Bank SA