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"Gold is finding support at $1,260, it is reluctant to go below that level and it is mainly due to weaker U.S. dollar."
- Phillip Futures (based on CNBC)
Pair's Outlook
Gold's intraday gains were extending beyond the 1,270 mark on Thursday, but the bears consolidated their power and made prices suffer. Ultimately, the bullion was down to the weekly pivot point near 1,257. Given important uptrend line (1,240), which has not given up to bearish pressure on Tuesday-Wednesday, our short-term outlook is positive and a recovery is highly likely. The key watch is on another upward-sloping trend-line at 1,287. This is the level where the bullion is forecasted to fail eventually, provided it is now developing inside the rising wedge pattern.
Traders' Sentiment
Bullish side lost eight percent from Thursday morning until today, down to only 30%. This is the worst sentiment with respect to the yellow metal in about three weeks.
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