Gold treads water before FOMC rate decision

Prices of the bullion have been largely unchanged in the past three trading days, even though the metal registered slight losses during each of those 24-hour periods. Short term projection remains neutral, as long as gold holds below 1,167/70 (weekly PP/Aug high) or above 1,158/55 (20-day SMA/weekly S1). On the other hand, US durable goods data may provide the positive impetus in case of disappointing numbers. Any extra volatility should be created tomorrow when the Fed will make an interest rate decision.

SWFX market sentiment with respect to the precious metal remained broadly unchanged for the past four weeks. Moreover, the share of bulls is completely flat at 52% already for five working days, meaning that their advantage still remains very negligible right now.