Although gold is struggling to attract bullish momentum, analysts note that its strength now relies on how much support is in the marketplace, even as speculative interest starts to drop.
In its latest trade data, Commodity Futures Trading Commission noted that speculative interest in the gold market dropped to its lowest level in three months as investors ditched their bullish bets and increased their bearish positioning.
The gold market is now net long by 74,643 contracts, dropping to its lowest point since March 14. At the same time, the precious metal saw its biggest drop in gross bullish positioning since early February. During the survey period, gold prices traded in a tight range, with support around $1,950 and resistance around $1,980 an ounce.
Last week the Federal Reserve left the interest rate unchanged but maintained its hawkish bias and signaled that it sees potentially two more rate hikes this year. The hawkish pause caused gold prices to drop to a three-month low, testing support at $1,930.
However, the gold market did not stay down for very long, as it was back in its previous $30 trading range before the end of the week. Analysts have noted that the price action shows there is still plenty of interest in gold; however, investors are being more tactical as they build a position.
GOLD SELL LIMIT 1961 - 1963 💯💯
✅ TP1: 1956
✅ TP2: 1950
✅ TP3: 1942
🛑 SL: 1970
In its latest trade data, Commodity Futures Trading Commission noted that speculative interest in the gold market dropped to its lowest level in three months as investors ditched their bullish bets and increased their bearish positioning.
The gold market is now net long by 74,643 contracts, dropping to its lowest point since March 14. At the same time, the precious metal saw its biggest drop in gross bullish positioning since early February. During the survey period, gold prices traded in a tight range, with support around $1,950 and resistance around $1,980 an ounce.
Last week the Federal Reserve left the interest rate unchanged but maintained its hawkish bias and signaled that it sees potentially two more rate hikes this year. The hawkish pause caused gold prices to drop to a three-month low, testing support at $1,930.
However, the gold market did not stay down for very long, as it was back in its previous $30 trading range before the end of the week. Analysts have noted that the price action shows there is still plenty of interest in gold; however, investors are being more tactical as they build a position.
GOLD SELL LIMIT 1961 - 1963 💯💯
✅ TP1: 1956
✅ TP2: 1950
✅ TP3: 1942
🛑 SL: 1970
