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"Gold remains locked in a fairly tight range as investors are either sitting on the sidelines or are set in their positions already leading into next week's FOMC meeting."
- ANZ (based on WBP Online)
Pair's Outlook
The bullion saw its value climbing in the direction of the monthly pivot point on Wednesday. However, the bears were allowed to register the day-end losses, thus sending the price back below the 20-day SMA to 1,072. The long upper shadow formed by XAU/USD means that the US Dollar's bulls are keeping commodities under pressure before next week's Fed meeting. A rally is not off the table, but we expect the monthly PP at 1,086 to try preventing the bullish outcome, as it happened earlier last week. At the same time, a sufficient demand was set up by weekly PP and July low at 1,073.
Traders' Sentiment
Market sentiment with respect to the yellow metal has remained broadly flat during the previous trading day. We observed the total number of bullish positions rising from 62% to 63% in the SWFX market.
© Dukascopy Bank SA