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    Gold hesitates near August high

    © Dukascopy Bank SA
    "You have the lower interest rates and you have the dollar story. They have a double impact because lower interest rates are usually supportive for precious metals and at the same time the weaker dollar is as well." 
    - ABN Amro Bank NV (based on Bloomberg) 


    Pair's Outlook 
    For the time being the precious metal is struggling to recover in the vicinity of the August high. Apart from the solid resistance here, we also have a dense supply area circa 1,180, which is a key to the May low and a multi-year down-trend at 1,230. Accordingly, as long as 1,180 is intact, the bias will remain bearish with a focus on the rising support line that connects lows of the last four months. Still, we should not forget the monthly R1 and 100-day SMA at 1,150 and 1,140 respectively that are highly unlikely to let the price fall sharply in case of a sell-off. 

    Traders' Sentiment 
    For almost a month now neither bulls (52%) nor bears (48%) are able to take the dominant position in the market, and the sentiment stays nearly perfectly neutral.
    © Dukascopy Bank SA

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