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"We are still cautious of choppy and illiquid conditions as there is very little depth in this market at present and could be subject to being pushed around."
- MKS Group (based on CNBC)
Pair's Outlook
The yellow metal saw completely no movement in either direction on Tuesday of this week, given that traders took a pause in the run up to New Year holidays. Despite that, the volume of trading increased on Monday and Tuesday towards daily averages. XAU/USD keeps hovering below 20-day SMA and weekly PP for the moment, meaning the weekly S1 is at risk of being breached in the short-term. If a break-out below 1,065 takes place, then the attention will shift to the next demand at 1,055 (weekly S2).
Traders' Sentiment
We are observing little changes in terms of the SWFX market sentiment towards gold. Traders decided to keep their open positions unchanged from yesterday, meaning the bulls are still holding 54% of all trades versus 46% for the bears.
© Dukascopy Bank SA