of clients are net short. Change in | Longs | Shorts | OI |
Daily | -6% | 8% | -2% |
Weekly | -1% | -3% | -2% |
Current Retail Sentiment in Gold Get My Guide Another bullish driver showed up this week and this could be a difficult theme to work with. But as fear began to show around the growing Coronavirus in China , and the potential for it to spread, buyers came back to the bid to push prices higher. While fears around the US and Iran appear to have dissipated in the weeks since that fresh six-year-high, the inclusion of a new, even less predictable driver may help to bring buyers in to support in Gold, even in an environment in which the US Dollar is similarly showing strength. I had discussed this in yesterday's webinar, as big takeaways from recent price action were strength showing in all of the USD , the JPY and Gold, indicating a hint of risk-off fear.
Nonetheless, from a price action perspective, the net outlay at the moment is yet another bout of digestion that could potentially be approached with a bullish bias. This would be garnered from the fact that horizontal resistance has held the highs this week, coming in around the 1567 level; while support has shown off of a rising trendline taken from January swing-lows.
This takes on the appearance of an ascending triangle formation, which will often be approached with the aim of bullish breakouts. The logic being that each hit at horizontal resistance has brought a lessened impact, as indicated by the rising trendline guiding the higher-lows. And given the bigger-picture backdrop of strength in Gold prices, this may eventually lead to a scenario of trend continuation in the yellow metal; with traders looking for bullish breaks of the 1567.10 resistance to open the door to bullish runs up to 1580 or, perhaps even 1600/1611.
Recommended by James Stanley Download our Q1 Gold Forecast Get My Guide Gold Hourly Price Chart Chart prepared by James Stanley
--- Written by James Stanley, Strategist for DailyFX.com
Contact and follow James on Twitter: @JStanleyFX
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