© Dukascopy Bank SA
"Gold may find support at $1,165 if Yellen proves to be unambiguously hawkish tonight."
- Phillip Futures (based on CNBC)
Pair's Outlook
XAU/USD remains in the vicinity of the major technical level, represented by the 2013 low at 1,183, which in turn is strengthened by the weekly pivot point from above. Yesterday, all efforts to plunge below them were unsuccessful; however, the Fed decision on Thursday can drive the metal unexpectedly strongly in either direction. Daily technical studies are giving signals to sell gold in the short-term. The closest support will then be located as far as 1,169 (weekly S1); therefore, the precious metal has room for the bearish movement.
Traders' Sentiment
Advantage of bulls over bears at the SWFX market has been flat during the past 24 hours, while the total share of long opened positions (71%) remains solid and bears are still in the well-pronounced minority with 29% of all trades.
© Dukascopy Bank SA