Gold move under $1205.90 will signal the presence of sellers
XAUUSD Technical Overview:
Pivot: 1201.20
Key Support: 1200.10 - 1198.45 - 1194.89 - 1191.23
Key Resistance: 1205.45 - 1207.55 - 1210.85 - 1214.75
Technical Indicator:
RSI: The indicator having bearish divergence.
Moving Average: SMA 55(1194.55) SMA 100(1191.75) & SMA 200(1195.78) strong support for Gold today.
Technical Trade View:
Most Likely Scenario: long @ 1206.10 with targets @ 1211.00 & 1217.00 in extension.
Alternative scenario: below 1201.30 look for further downside with 1197.50 & 1194.00 as targets.
Overall, Gold prices have been aggressively rallying overnight. Rather odd that the USD is not leading this move that has triggered a significant and very convincing short squeeze. Remember that according to CFTC data GOLD speculative net positioning increased to its highest since December 2001 as prices declined for a sixth straight month in September. Accounts sold an additional 6,804 contracts in the week to September 25, according to the latest CFTC data published last Friday, bringing total net short positions to 17,648, the most since the week of December 11 2001.
Gold has moved higher overnight primarily driven by the return of safe-haven appeal, keeping Italy risks in mind. Interesting I was discussing that fact yesterday, that in the past when we were not dealing with a strong USD narrative, Gold would pop $15-20 higher in a heartbeat on EU contagion fears.
Sometimes, it’s easy to be blind to the facts, especially when getting so accustomed to positioning gold off the US dollar moves. But with l tightness in Copper markets influencing the base metal complex higher. There’s likely some knock-on effect from that correlation as well; indeed, shorts are being caught out on this one, and weaker near-term stops above $1200 level are probably contributing the flow. But for a specific technical trigger, commodity traders were focusing a Gold cross currency relationship, and it was the break of Gold vs EUR 1030 that triggered the short position carnage.
Thanks
YoCryptoManic
Pivot: 1201.20
Key Support: 1200.10 - 1198.45 - 1194.89 - 1191.23
Key Resistance: 1205.45 - 1207.55 - 1210.85 - 1214.75
Technical Indicator:
RSI: The indicator having bearish divergence.
Moving Average: SMA 55(1194.55) SMA 100(1191.75) & SMA 200(1195.78) strong support for Gold today.
Technical Trade View:
Most Likely Scenario: long @ 1206.10 with targets @ 1211.00 & 1217.00 in extension.
Alternative scenario: below 1201.30 look for further downside with 1197.50 & 1194.00 as targets.
Overall, Gold prices have been aggressively rallying overnight. Rather odd that the USD is not leading this move that has triggered a significant and very convincing short squeeze. Remember that according to CFTC data GOLD speculative net positioning increased to its highest since December 2001 as prices declined for a sixth straight month in September. Accounts sold an additional 6,804 contracts in the week to September 25, according to the latest CFTC data published last Friday, bringing total net short positions to 17,648, the most since the week of December 11 2001.
Gold has moved higher overnight primarily driven by the return of safe-haven appeal, keeping Italy risks in mind. Interesting I was discussing that fact yesterday, that in the past when we were not dealing with a strong USD narrative, Gold would pop $15-20 higher in a heartbeat on EU contagion fears.
Sometimes, it’s easy to be blind to the facts, especially when getting so accustomed to positioning gold off the US dollar moves. But with l tightness in Copper markets influencing the base metal complex higher. There’s likely some knock-on effect from that correlation as well; indeed, shorts are being caught out on this one, and weaker near-term stops above $1200 level are probably contributing the flow. But for a specific technical trigger, commodity traders were focusing a Gold cross currency relationship, and it was the break of Gold vs EUR 1030 that triggered the short position carnage.
Thanks
YoCryptoManic