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"Gold has proven one time too many that it prefers to stick to $1,200 amid large fluctuations and I am inclined to believe that the precious metal may slowly edge back to that level just before Friday's nonfarm payrolls."
- Phillip Futures (based on CNBC)
Pair's Outlook
Despite an attempt to test the 1,170 area, XAU/USD decided to return back towards the 2013 low by the end of the session. In addition, some bullish support was provided by the lower Bollinger band, currently at 1,174. If the bullion wants to confirm the medium-term bearish outlook, it should consolidate even below the weekly PP at 1,160. Otherwise, the precious metal will try to remain within a tight range below 1,194, where the price is going to be strongly limited by 55-day SMA and monthly PP.
Traders' Sentiment
Advantage of bulls over bears at the SWFX market is considerable at the moment, as the former are dominating by keeping 73% of all opened positions, down two percentage points over the weekend.
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