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"We are bearish toward gold prices and the underlining factor for this is our expectation that the Fed will raise interest rates by the third quarter."
- OCBC Bank (based on CNBC)
Pair's Outlook
XAU/USD recovered for a third day in a row last Friday with the support from monthly S1 at 1,154; however, the bullion's development was widely muted as investors were awaiting Greek negotiations to take place during the weekend. At the moment gold hovers just around the weekly PP at 1,161. This level is unlikely to play a major role in the short-term, while aggregate technical indicators on all time frames are currently bearish. Thus, we may observe a U-turn back towards the nearest monthly support in the foreseeable future.
Traders' Sentiment
Sentiment of the SWFX market with respect to gold remains undoubtedly positive at the moment, as bulls are enjoying a majority of 70% versus just 30% for bears.
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