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"Gold is looking weak at the moment as there is some risk-on sentiment in the market and equities have rebounded."
- a trader in Hong Kong (based on CNBC)
Pair's Outlook
Monday's intraday rally was extending through the weekly and monthly pivot points at 1,239/41. However, by the end of US session the bears managed to retake the lead and sent the bullion into red. Now the near-term cap is established at those pivots, which is set to renew attempts of testing the 55-day SMA, currently at 1,229.27. A slide below here is going to change the market focus and the bears will begin targeting the 1,201/1,198 zone guarded by the weekly S2 and monthly S1. Meanwhile, daily technicals suspect XAU/USD may have a chance to commence a revival.
Traders' Sentiment
Bearish advantage over the bulls is down to only ten percentage points by Tuesday morning. Yesterday the gap amounted to as many as 18 pp. This has been a fifth consecutive day of bullish gains in the SWFX market.
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