Gold Price Prediction – Risk-free underlying gold loan for a short-term supply
Gold Analysis, Price and Chart (XAU / USD)
- The sense of risk begins to sour as fears of growth reappear.
- The strength of the US dollar must be monitored.
Monday’s collapse in risks saw gold rise, despite the continued strength of the US dollar and fears of lingering inflation. The precious metal hit a low of around $ 1,794 / oz. Monday before skyrocketing $ 20 more in no time. The precious metal has stabilized today at around $ 1,814 / oz. its level and short-term outlook will now depend on both fluctuations in the US dollar and the overall tone of risk in the market. All eyes will be on next week’s FOMC meeting.
For all the news and data releases concerning the market, consult the DailyFX Economic Calendar
The daily chart shows that gold has fallen through recent channel support and this may prove difficult to regain in the short term. The three moving averages are confused giving a mixed signal, while the CCI indicator also gives a neutral signal. Volatility remains low. If gold’s safe-haven status recovers, prices could drift higher, but the rise and fall remains limited before the Fed, unless there is another risky event.
Daily Gold Price Table (September 2020 – July 20, 2021)
Customer sentiment data shows 84.66% of traders are net long with a long / short ratio of 5.52: 1. The number of net-long traders is 7.76% lower than yesterday and 7.25% lower than last week, while the number of net-short traders is 3.64% higher at that of yesterday and 13.90% lower than last week.
We generally take a contrarian view of crowd sentiment, and the fact that traders are net long suggests that gold prices may continue to decline.The positioning is shorter on the net than yesterday but longer on the net than last week. The combination of current sentiment and recent changes gives us another mixed gold trading bias.
What is market sentiment and how does it work?
What is your take on Gold – are you bullish or bearish ?? You can let us know via the form at the end of this article or you can contact the author via Twitter @ nickcawley1.