Gold Analysis and News:
- US Real Yields Still Paints a Bleak Picture For Gold
- IG Client Sentiment Signals Bearish Gold Outlook
US Real Yields Still Paints a Bleak Picture For Gold
As I have said previously, the rise in real yields is a concern for gold and one which makes me hard to get bullish on the precious metal. Now admittedly, lower gold prices has not initially been the case given the failed test at 2000. With gold below 1915, this now represents resistance, while key support is situated at 1880. Until 1880 is broken, technically, gold is neutral.
Gold vs US 10Y Real Yields
Source: Refinitiv
IG Client Sentiment Signals Bearish Gold Outlook
Data shows 84.67% of traders are net-long with the ratio of traders long to short at 5.52 to 1. The number of traders net-long is 20.22% higher than yesterday and 11.47% higher from last week, while the number of traders net-short is 19.70% lower than yesterday and 38.79% 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.
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Gold Chart: 4 Hour Time Frame
Source: Refinitiv
