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Saturday, September 25, 2021

Gold Sentiment Traders are Net Long in Here


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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