Gold Prices Falter at 2017 Highs
- Gold Prices Falter at 2017 Highs
- Sentiment Figures remain off of extremes, reading at +1.45
- Looking for additional trade ideas for gold and commodities markets? Read our 2017 forecast
Gold prices are trading lower this afternoon, after initially moving to a new 2017 highs at $1,220.12. With today’s decline, traders are left to speculate whether prices will retrace further or breakout to new highs ahead of this week’s US GDP data. Expectations for Friday’s event are set at 2.2%, and any deviation from this value may directly impact gold prices.
Technically, even with today’s decline, gold prices remain in a short term uptrend. The commodity remains over its short term 10 day EMA (exponential moving average), which is providing support at $1,203.22. A move below this point would be significant as it would put gold back on a trajectory in line with its longer term trend. Alternatively if the metal remains supported here, prices may continue to make an attempt towards the 200 day MVA (simple moving average) found at $1.265.72.
(Created Using TradingView Charts)
Traders tracking sentiment should note that SSI values for Gold remain off of extremes. SSI is now reading at +1.45, which is in stark contrast of values of +2.90 or greater seen earlier in the month. With 59% of positioning now long, it would be expected to see this value fall further if Gold prices continue to advance in the short term. Alternatively if gold breaks lower, back in the direction of the primary trend, it would be reasonably expected to see SSI totals jump back up towards positive extremes of +2.0 or greater.
--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.