Gold has been attracting buying interest since the $1,700 levels, reaching a multi-week high of $1,790 yesterday. Today's trading range is rather narrow, with bears failing to push below $1,763, and bulls facing a strong obstacle at $1,775.
Falling real US yields have been supporting the yellow metal. This chart shows the 10y yield minus inflation, and the chart is inverted. A rising blue line signals lower real yields, which increases buying interest in Gold.
Gold miners ETFs (iShares MSCI Global Gold Miners ETF) reached a fresh high and could possibly support higher prices in Gold.
Regarding market positioning, managed money has increased their short positions in gold in the previous week, but the net positioning and bias remain strongly bullish.
Finally, seasonality patterns show a clear demand for Gold during the month of April for the last 20 years. This is another bullish sign at the moment.
A retest of the recent low around the $1,760 level could be used by larger institutions to increase their buying in gold.
Gold miners ETFs (iShares MSCI Global Gold Miners ETF) reached a fresh high and could possibly support higher prices in Gold.
Regarding market positioning, managed money has increased their short positions in gold in the previous week, but the net positioning and bias remain strongly bullish.
Finally, seasonality patterns show a clear demand for Gold during the month of April for the last 20 years. This is another bullish sign at the moment.
A retest of the recent low around the $1,760 level could be used by larger institutions to increase their buying in gold.
Trade closed: target reached
