Gold refuses to fall below 1,108

The yellow metal failed to consolidate below the weekly S1 at 1,108 on Thursday and therefore was forced to come back above this important mark. Nonetheless, the bullish development is unlikely in the medium term as long traders are going to face a strong cluster of resistances ahead at 1,119-1,131. On the other hand, we also do not see a significant decline in prices to take place at least until the next week's decision of the Federal Reserve on the key interest rate. Thus, the near term outlook is neutral with respect to gold.

Yesterday the SWFX positive sentiment with respect to gold added one additional percentage point to 59%, the highest level in 23 trading days.