Gold Prices Carve Fresh Bearish Sequence After Posting July-High

Gold Talking Points

The new miscarry in a cost of bullion continues to unravel, with bullion during risk for a serve waste as it carves a uninformed array of reduce highs lows.

Image of daily change for vital currencies

Gold Prices Carve Fresh Bearish Sequence After Posting July-High

Image of daily change for bullion prices

The changed steel continue to tumble behind from a monthly-high ($1266) after stalling during a near-term pivot, with a July-low ($1238) now on a radar as a bearish movement appears to be entertainment pace.

Keep in mind , a monthly opening operation suggests a near-term tip is in place following a fibre of unsuccessful attempts to tighten above a $1260 (23.6% expansion) hurdle, and a new arise in sensitivity appears to be accompanied by a pickup in prolonged seductiveness as sell view continues to lay during an extreme.

Image of IG Client Sentiment for gold

The IG Client Sentiment Report shows 88.0% of traders are still net-long gold with a ratio of traders prolonged to brief during 7.35 to 1. The array of traders net-long is 0.2% aloft than yesterday and 5.3% aloft from final week, while a array of traders net-short is 13.5% aloft than yesterday and 7.6% reduce from final week.

The refurbish continues to strengthen a bearish opinion for bullion as sell view stays heavily skewed, and a changed steel might theatre a some-more suggestive run during a December-low ($1236) as a Relative Strength Index (RSI) flirts with oversold territory, with a mangle subsequent 30 expected to be accompanied by a serve decrease in a cost of gold.

Gold Daily Chart

Image of bullion daily chart

  • Broader opinion for bullion stays slanted to a downside as both cost and a Relative Strength Index (RSI) extend a bearish formations from progressing this year, and a changed steel appears to be on a proceed to exam a monthly-low ($1238) as it carves a uninformed bearish sequence.
  • A mangle of a December-low ($1236) raises a risk for a pierce towards $1210 (50% retracement) to $1219 (61.8% retracement), that lay only above a Jul 2017-low ($1205), with a subsequent segment of seductiveness comes in around $1198 (38.2% expansion).

For some-more in-depth analysis, check out a Q3 Forecast for Gold

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— Written by David Song, Currency Analyst

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