Jump to content

Gold Price Outlook – Support Looks Vulnerable if US Inflation Runs Hot


MongiIG

Recommended Posts

GOLD PRICE (XAU/USD), CHART, AND ANALYSIS

  • Gold is listless ahead of the latest US inflation report.
  • Support remains under threat.
  • Retail traders remain heavily long of the precious metal.
If You Watch Gold Prices Each Week You Will Go Crazy, and Become Poor -  TheStreet

Financial markets are treading water Friday morning ahead of the latest look at US inflation at 13:30 GMT. The current market expectation of a headline reading of 6.8% in November – from a 30-year high of 6.2% in October – is now being questioned with some market analysts suggesting a 7% print or higher. Yesterday the Biden administration indicated that while they see price increases slowing down, this would not be reflected in today’s release which was expected to be high. This commentary gave the US dollar a small bid.

A glance at the US Treasury market shows that the rate-sensitive 2-year UST is now trading with a yield of 0.725%, the highest level since March 2020. Traders have recently moved forward the timing for interest rate hikes in the US to the end of Q1, while the market is also now pricing in three 0.25% rate hikes.

Gold Price Outlook – Support Looks Vulnerable if US Inflation Runs Hot

 

Gold has been quiet of late, despite the flashes of volatility seen in other markets. Price action has been stuck in a limited $30 range of late, while this week sellers have had the upper hand and have nudged gold lower. The precious metal is now just $9 above an important support level - 50% Fibonacci Retracement of the March-August 2020 rally - at $1,763/oz. A confirmed break of this support leaves the recent double low made at the end of September at $1,722/oz. as the next downside target. A weaker-than-expected US CPI release could see gold back to $1,795/oz, breaking the recent pattern of lower highs.

Gold (XAU/USD) Daily Price December 10, 2021

Gold Price Outlook – Support Looks Vulnerable if US Inflation Runs Hot

Retail trader data show82.71% of traders are net-long with the ratio of traders long to short at 4.78 to 1. The number of traders net-long is 2.49% higher than yesterday and 1.73% higher from last week, while the number of traders net-short is 5.24% lower than yesterday and 3.17% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall.Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Gold-bearish contrarian trading bias.

 

What is your view on Gold – bullish or bearish?

 

By Nick Cawley, Strategist, 10th December 2021. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Recently, U.S. Senator Bill Hagerty from Tennessee spoke at the Bitcoin conference, stating his efforts to push for Bitcoin-supportive legislation to promote freedom and opportunity. This year, cryptocurrency has become a key battleground in the election campaigns. It remains to be seen whether future policies on cryptocurrency will improve.
    • The digital landscape is undergoing a profound transformation as attention, once a freely given commodity, is increasingly recognized as a valuable asset. Layer3 is at the forefront of this revolution, pioneering a new economy where attention can be owned, traded, and monetized   This innovative approach empowers individuals to monetize their engagement, providing unprecedented control over personal data. Simultaneously, advertisers benefit from transparent metrics that optimize campaign performance. Content creators are presented with diverse revenue avenues beyond traditional advertising, while the overall ecosystem experiences a more equitable distribution of value.   The implications of Layer3 extend across various sectors. Social media platforms, for instance, can leverage this technology to revolutionize user engagement and monetization strategies. Tokenomics play a crucial role in driving Layer3's economy, incentivizing participation and rewarding value creation. While challenges such as data privacy and market volatility exist, the potential benefits of Layer3 are immense   Anticipation is building as its native token $L3 is on Bitget Pre-market as users await its listing on the exchange. This milestone is expected to significantly increase the token's visibility and accessibility, potentially driving substantial growth and attracting new investors. As the countdown begins, the crypto community watches with keen interest, eager to see how Layer3 will perform in this new chapter.
    • I've been exploring the world of play-to-earn gaming recently, looking for something that's not just about endless grinding but actually offers a fun and rewarding experience. OGC really stood out to me because it combines gaming with a sense of community in a unique way. OGC isn't just a game; it's a platform where you can play, earn, and even help shape its future. You're not just a player; you're part of a community with a voice. The idea of earning crypto while playing games is exciting, but what makes OGC special is its focus on community involvement. Your feedback can directly influence the development of the game, which is a big deal. I've also heard that the OGC token is available for pre-market trading on Bitget. While I'm still getting to know the platform and its features, it's definitely something to keep an eye on. Has anyone else tried OGC? What has your experience been like? I'd love to hear your thoughts and any tips you might have.
×
×
  • Create New...
us