11/4/2021
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.
Our outlook
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.
Trade Setups
XAUUSD
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.
Gold is up nearly half a percent today while USD down a third of one as of 10:18 am EST. As we wait for the upcoming and looming NFP numbers this Friday, we can assess the economic data we already have. EdgeFinder Analysis The stock market sighed in relief after the debt ceiling bill finally […]
The dollar flew higher last week as a result of resilient economic news along with a higher PCE than expected. Now the DXY has reached a decision point in price action. This week's NFP will help determine the sentiment around the potential June rate hike. Here is what we are looking at: EdgeFinder Analysis USDCAD […]
Considerably dovish news from central banks in the US and New Zealand has caused a major stir in the markets. Governor Orr and Vice Chairman Powell both released some reassuring news for the economy in the long term. But what does this mean for USD and NZD? EdgeFinder Analysis GBPNZD is a pair that should […]
