Dukascopy - Analytics

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Real

XAU/USD closes below weekly S1

© Dukascopy Bank SA
"I would like to move on the back of good news, basically, and I think it's very difficult to say that you're trying to normalize interest rates just at the moment where the economy looks a little bit weaker."
- James Bullard, St. Louis Fed President (based on CNBC)

Pair's Outlook
Bullion bears decided to push the price below 1,180 on Thursday; therefore, the precious metal hit its lowest level in more than 30 calendar days at 1,173. As a result, the immediate support, which is represented by the weekly S1 at 1,177, has been erased and now the focus is on the next demand at 1,164. However, the intermediate target is located at 1,170 (April low). In addition to that, technical indicators on all time frames are now suggesting gold will plummet further. 

Traders' Sentiment
Advantage of bulls over bears at the SWFX market expanded even more during the past 24 hours. While staying at 54% and 61% in the morning on Wednesday and Thursday, respectively, the share of long opened positions surged by seven additional percentage points on a daily basis to reach 68% on Friday.  

© Dukascopy Bank SA


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