I think i like trying gold lower here.
Looking at the RSI we've started to get bearish divergence on the 4 hour and 1 hour charts. We've also topped out around these levels since Wednesday.
I imagine a lot of people went long gold over this week due to all the banking worries and lower US yields. You can see from the chart that gold has been very inversely correlated to US yields for a while. I think after yesterdays hawkish ECB people may start to exit gold longs going into the fed as we people may expect a hawkish fed as well. I'm expecting US yields to rise which should mean lower gold as well.
Gold has also been very correlated to the VIX which is lower as well which should mean lower gold.
Positioning is likely quite long short term so this should help a squeeze to the downside if we see it.
I don't really trade gold so take with a pinch of salt, i think it makes sense though.
Not trading/investment advise, feedback welcome!
Looking at the RSI we've started to get bearish divergence on the 4 hour and 1 hour charts. We've also topped out around these levels since Wednesday.
I imagine a lot of people went long gold over this week due to all the banking worries and lower US yields. You can see from the chart that gold has been very inversely correlated to US yields for a while. I think after yesterdays hawkish ECB people may start to exit gold longs going into the fed as we people may expect a hawkish fed as well. I'm expecting US yields to rise which should mean lower gold as well.
Gold has also been very correlated to the VIX which is lower as well which should mean lower gold.
Positioning is likely quite long short term so this should help a squeeze to the downside if we see it.
I don't really trade gold so take with a pinch of salt, i think it makes sense though.
Not trading/investment advise, feedback welcome!