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"For all the talk of market turmoil, it is important to note that the Fed does not typically look at overseas developments to make its rate decision and we don't think this time will be any different."
- INTL FCStone (based on CNBC)
Pair's Outlook
Gold failed to consolidate below the 1,125 support mark reinforced by the weekly S1 on Aug 27. Therefore, bulls may count on a recovery in the near-term; however, a successful testing of resistance cluster at 1,128/31 is required, in order to sustain any potential rally. Therefore, unless this area is penetrated our outlook remains strongly bearish with respect to the precious metal, while the shorts are still targeting 1,113 (Aug 15-16 lows, monthly PP). Nonetheless, bullish views are in turn strengthened by overwhelmingly positive daily technical indicators.
Traders' Sentiment
SWFX sentiment with respect to gold fell just one percentage point yesterday, as bulls and bears are currently holding 55% and 45% of all open positions, respectively.
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