gold price technical analysis daily – Gold Breaks Out as Hedge Funds add to Long Positions

gold price technical analysis daily – Gold Breaks Out as Hedge Funds add to Long Positions

gold price technical analysis daily – Gold Breaks Out as Hedge Funds add to Long Positions

 

Gold prices broke out on Tuesday during a vacation shorted session pushing through the December highs despite a stronger dollar and unchanged US yields

 gold price technical analysis daily There was little or no data to drive prices following Monday’s US durables orders which was weaker than expected and a downgrade in projected US GDP by the Atlanta Fed. Riskier assets began to consolidate which helped the alpha-beta brass still gain an edge

Gold prices broke out above the December highs near 1,486, breaking through a downward sloping line and is now poised to check the November highs at 1,516
gold price technical analysis daily Support is seen near the 50-day moving average near 1,477, which coincides with the downward sloping line. Additional support is seen near the 10-day moving average at 1,470. Short term momentum is reaccelerating because the fast stochastic generated a crossover buy signal

 gold price technical analysis daily the sole caveat is that the fast stochastic is printing a reading of 87, above the overbought trigger level of 80, which could foreshadow a correction.Medium-term momentum is positive because the MACD histogram prints within the black with an upward sloping trajectory which points to higher prices. The RSI (relative strength index) is accelerating higher pointing to accelerating positive momentum

Hedge Funds Remain Long Gold

Hedge funds added their long position in futures and options consistent with the newest commitment of trader’s report released for the date ending December 17, 2019
gold price technical analysis daily According to the CFTC, managed money increased long position in futures and options by 18.5K contracts while reducing short position in futures and options by 3K contracts. Open interest that's long futures and options outnumbers open interest that's short futures and  options by a ratio of nearly 10-1. This leaves the gold market susceptible to an extended liquidation