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"At these prices gold has already priced in a December rate hike. $1,150 is a big level on the downside, and on the upside I think $1,165 will be pretty hard to break."
- a precious metals trader in Sydney (based on CNBC)
Pair's Outlook
Markets expected somewhat dovish Fed stance yesterday. A completely opposite outcome of the meeting pushed gold prices considerably to the south. While initially trading with a premium, the bullion's spot dipped down to 1,156 by the end of Wednesday trading and established a new two-week low. A decline was capped by the weekly S1 and the short term expectations assume a recovery from here. Major resistance is created by 1,167/71 area, where a sell-off should resume. A drop below 1,155 is required to affirm our negative projections with respect to gold amid uplifted US Dollar.
Traders' Sentiment
It seems that bulls enjoy holding a slight advantage over bears. The percentage of long open positions has been completely unchanged at 52% since Thursday of the previous week, which gives the bullish traders a 4% lead.
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