Last week's Commitment of Traders Report (COT) showed a noticeable increase in the number of long contracts as well as a decrease in the number of short contracts. The metal is up 1.41% at the time of writing this.
There are lots of things going for gold from a fundamental standpoint, but the metal has yet to perform which is kind of frustrating to the bulls who have several reasons for gold to keep rising. COT is another reason, but there are some things that need to happen on the technical side for the metal to prove that its got enough momentum to keep pushing higher.
On the 1D chart, price action doesn't look promising right now. We broke under a rising trend line and have been ranging from there, however, price is now above the 50 DMA. What would look promising for the metal is if it could break out of the $1700s and remain above the 200-day MA. A close above that moving average could be enough to bring gold up to the $1820-30s level and test resistance again.
12/2/2021 US equities fell 5% from the highs after fears of a new coronavirus variant emerged and the first case was recorded in the US. SPX500 is up .10% on the day at the time of writing this. Our outlook The new omicron variant is definitely concerning most investors right now as the US will […]
Check out my previous G/U deep dive from early October here to see how we have progressed... Technical Outlook: Price has mainly been travelling in channels throughout the past year. As we saw the ascending channel formed post-Covid last year, price began retesting all previous key horizontal levels. Over the past couple of months, price has […]
11/30/2021 Gold price rose 0.59% on the day at the time of writing this in light of the uncertainty surrounding the Fed's policy towards the new variant and tapering of asset purchases. Our outlook I think gold will likely see some green today as the virus concerns can cause a slow in growth since the […]