Gold Sentiment Traders are Net Long in Here

Gold Sentiment Traders are Net Long in Here

$XAU, $XAUUSD, $GLD

FLASH: The Gold markets pulled back during the week, but then found enough support at the uptrend line of the ascending triangle to reverse and break above the Key $1450 mark

Friday, US Gold futures settled near 6-year highs +1.8% at $1,457.50 oz, helped along by prospects of safe-haven investments,trade threats from President Trump and the 80% chance of more fed fund interest rate cuts in September and December toward 0.25-Zero per cent, the early end to the Fed selling off of it $3.6-T bond portfolio, and a falling USD, the .DXY shed about 0.3% to 98.10 on the day.

Gold Price Chart – XAUUSD Weekly

Gold Price Chart - XAU/USD Weekly - GLD Technical Outlook

Gold is testing confluence uptrend resistance again on the weekly close, gold settled above this resistance zone Friday.

So, from a trading standpoint, a good place to reduce long-exposure / raise protective stops.

Now, look for a pivot off the 75% parallel at 1451 for guidance heading into the August opening-range with a breach needed to mark resumption of the broader uptrend likely to accelerate on the breakout toward Key resistance at 1,474 then psych resistance at 1,500.

Gold Trader Sentiment - XAU/USD Price Chart - GLD Technical Outlook

 A summary sentiment traders shows they are net-Long; the ratio stands at +1.96 (66.2% of traders are long), Bearish reading Long positions are 9.1% lower than Thursday and 19.1% lower from last week Short positions are 4.2% higher than Thursday and 7.8% higher from last week.

So, from a sentiment standpoint, the recent changes in positioning say that the current spot gold price trend may soon spike higher despite the fact traders remain net-Long. And the contrarians are going Short which will add a driver on an extension of this rally.

How it looks to me today in a sentence: “Things are set up for another big up-move and the next big test will be to take out $1,474, then I believe the price is headed to $1,500.”

Have a terrific weekend

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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