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"The world's economic condition doesn't seem to give the Fed reason to hike rates soon given the growth risks."
- OCBC Bank (based on CNBC)
Pair's Outlook
Gold will likely manage to consolidate above 1,107 on Wednesday, in case it preserves gains of the previous trading session. On Tuesday the precious metal climbed to 1,120 and the next major resistance zone is fairly reachable over the next 24 hours. The Fed should provide a dovish statement to weaken the Dollar and raise demand for the safe haven. We are watching the 200-day SMA at 1,130 and this level is reinforced by a third monthly resistance at 1,127. Success here will imply a major shift of market sentiment, while new focus will be on the 2015 downtrend line at 1,150.
Traders' Sentiment
54% of all SWFX market participants are holding long positions on gold in the morning on Wednesday, down from 55% seen 24 hours ago. Market sentiment has changed for the first time since last Thursday.
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