Gold Talking Points
Broader opinion for bullion prices sojourn lean to a downside as a changed steel extends a bearish trend from progressing this year, and a new miscarry appears to stalling during a near-term focus as a changed steel fast falls behind from a July-high ($1266).
Gold Price Outlook Mired by Extreme Retail Positioning
A demeanour during a monthly opening operation suggests a near-term tip is in place amid a unsuccessful attempts to tighten above a $1260 (23.6% expansion) hurdle, and bullion prices might continue to connect over a days forward as merchant view sits during an extreme.
The IG Client Sentiment Report shows 88.2% of traders are still net-long gold, with a ratio of traders prolonged to brief during 7.45 to 1. The array of traders net-long is 3.4% reduce than yesterday and 2.4% aloft from final week, while a array of traders net-short is 5.2% reduce than yesterday and 6.8% reduce from final week.
The refurbish reinforces a bearish opinion for bullion as sell seductiveness stays heavily skewed, with new cost movement curbing a hazard for a incomparable liberation as both cost and a Relative Strength Index (RSI) safety a bearish formations from progressing this year.
Gold Daily Chart
- Gold prices might face range-bound conditions following a unsuccessful attempts to tighten above a $1260 (23.6% expansion) hurdle, with a reduce end entrance in around $1246 (23.6% expansion) to $1249 (38.2% retracement).
- However, a break/close next a settled segment brings a downside targets behind on a radar, with bullion during risk of entertainment a some-more suggestive run during a December-low ($1236).
- Next area of seductiveness comes in around $1210 (50% retracement) to $1219 (61.8% retracement) followed by a $1198 (38.2% expansion) region.
For some-more in-depth analysis, check out a Q3 Forecast for Gold
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— Written by David Song, Currency Analyst
Follow me on Twitter during @DavidJSong.