Jump to content

Gold Prices Remains Edgy as Risk Markets Look to Consolidate


MongiIG

Recommended Posts

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

  • Wild swings in gold as risk turns off and on.
  • US inflation data this afternoon may move the dial.
  • Retail traders cut back their short positions.
7 Common Factors That Influence Gold Prices | The Motley Fool

The wild price action seen in the gold space on Thursday has calmed today with the precious metal sitting quietly in a very small range so far. Gold hit the mid-$1970s/oz yesterday on news that Russia had invaded Ukraine but then turned sharply lower and negative on the day in late-European trade as a wave of risk-on sentiment swept over the markets, led by sharp turnarounds in the Nasdaq and the cryptocurrency space. With no clear driver identified behind this move, gold will remain on edge over the coming days and weeks.

Later today we have the Fed’s favored inflation reading, Core PCE, released at 13.30 GMT and this is expected to show that inflation continues to move higher, ratcheting up the pressure on the Fed to hike rates hard and fast. The volatile situation in Eastern Europe however may stimy the Fed’s plans, in the short-term at least, leaving gold with the room to move higher. On the other hand, if energy prices continue to hit multi-year highs, then headline inflation will jump further, forcing the Fed to react quickly and decisively. Either way, expect more volatile market conditions ahead.

Gold Prices Remains Edgy as Risk Markets Look to Consolidate

For all market-moving data releases and events, check out the DailyFX Calendar

Thursday’s $100/oz. candle shocked many market participants, especially after the precious metal soared to over $1,970/oz. in early trade. The sell-off later in the day looked like a risk-on squeeze, with risk-on markets bid strongly and risk-off markets hit lower. This sent gold tumbling lower before the move came to a halt at $1,877/oz. the same level as a swing high made in mid-November. The indecision in the market yesterday is highlighted by the open and close being with a couple of dollars of each other. Gold is now trading on either side of $1,916/oz. another prior swing high that was made at the end of May last year. If this is confirmed as support, then there is very little in the way of resistance all the way back up to Thursday’s high.

GOLD DAILY PRICE CHART – FEBRUARY 25, 2022

Gold Prices Remains Edgy as Risk Markets Look to Consolidate

 

Retail trader data 74.61% of traders are net-long with the ratio of traders long to short at 2.94 to 1. The number of traders net-long is 1.53% lower than yesterday and 8.23% higher from last week, while the number of traders net-short is 25.40% lower than yesterday and 41.64% 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?

 

Feb 25, 2022 |  Nick Cawley, Strategist. 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
  • General Statistics

    • Total Topics
      22,140
    • Total Posts
      93,024
    • Total Members
      42,523
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    xierf
    Joined 06/06/23 22:02
  • Posts

    • Elliott Wave Analysis TradingLounge Daily Chart, 7 June 23,   Bitcoin/U.S.dollar(BTCUSD) BTCUSD Elliott Wave Technical Analysis Function: Reactionary(Counter Trend) Mode: Corrective Structure: Double Corrective Position: Wave(Y) Direction Next higher Degrees: wave ((2)) of Motive Details: Wave ((2)) is likely to end at 25354.69. A five-wave rise will confirm this idea. Wave Cancel invalid level: 25354.69. Bitcoin/U.S. dollar (BTCUSD)Trading Strategy: Bitcoin has recovered well from the 25354.69. level and can still hold above the MA200 line, leading us to expect Wave 2 to end at 25354.69. , the price is returning to an upward trend, and a five-wave rise will support this idea. Bitcoin/U.S. dollar (BTCUSD)Technical Indicators: The price is above the MA200 indicating an Uptrend, Wave Oscillator has a Bullish Divergence. TradingLounge Analyst: Kittiampon Somboonsod, CEWA Source : Tradinglounge.com get trial here!   Elliott Wave Analysis TradingLounge 4H Chart, 7 June 23,   Bitcoin/U.S.dollar(BTCUSD) BTCUSD Elliott Wave Technical Analysis Function: Reactionary(Counter Trend) Mode: Corrective Structure: Double Corrective Position: Wave(Y) Direction Next higher Degrees: wave ((2)) of Motive Details: Wave ((2)) is likely to end at 25354.69. A five-wave rise will confirm this idea. Wave Cancel invalid level: 25354.69. Bitcoin/U.S. dollar (BTCUSD)Trading Strategy: Bitcoin has recovered well from 25354.69, but has yet to break the MA200 completely. We expect Wave 2 to end at 25354.69. Price is returning to an upward trend. And a five-wave increment would support this idea. But even so, one has to be wary of a correction of wave 2 on smaller scales. Bitcoin/U.S. dollar (BTCUSD)Technical Indicators: The price is below the MA200 indicating a Down Trend, Wave Oscillator is Bearish momentum.
    • Commodity Market Technical Analysis Elliott Wave and Trading Strategies Content: US Bond Yields, USDJPY, EURUSD, AUDUSD,Dollar DXY, US Gold, GDX, Silver, Copper, Iron Ore, Lithium, Nickel, Crude Oil, Natural Gas. Commodities Market Summary: The USD DXY is pushing higher into Wave v) of C of (2) while precious and base metals are doing the opposite Trading Strategies: No strategies Video Chapters 00:00  US Gov Bonds 10 Yr Yields 01:34 US Dollar Index DXY USDJPY, EURUSD, AUDUSD 14:13 Spot Gold /  GDX ETF 18:47 US Spot Silver 20:39 US Copper / Lithium / Nickel / Iron Ore 37:51 Crude Oil  40:30 Natural Gas  46:50 End Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com  Access Trial here... buy 1 month Get 3 months       
    • HI can anyone tell me when IG will publish CTC for the 2022/23 tax year please? Cheers
×
×
  • Create New...