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"A very dovish display by the Federal Open Market Committee appeared to be the main catalyst for gold."
- Phillip Futures (based on Bloomberg)
Pair's Outlook
XAU/USD benefited significantly from the fundamental statistics in the US on Thursday, and several resistances failed to provide sufficient opposition to bulls. Among them, the monthly pivot point and 100-day SMA were violated to the north, while these levels are also accompanied by the 55-day SMA and weekly R1. The only help for bears came from the next supply zone around 1,205 (23.6% Fibo, 200-day SMA, weekly R2), and these technical levels are capable of launching a correction phase in the near-term.
Traders' Sentiment
Advantage of bulls over bears at the SWFX market decreased by seven percentage points during the past 24 hours, as market participants closed long trades amid the metal's upward change in price. The total share of long open positions, however, remains solid at 64% and bears are still in the minority with 36% of all trades.
© Dukascopy Bank SA