Gold Remains Rangebound, Silver is Weak; Technical and Sentiment Analysis
Gold prices are inching upward, recovering about half of Monday's losses, as tensions escalate over potential Iranian retaliation against Israel. Following the death of Hamas leader Ismail Haniyeh last week, Iran has openly vowed retribution, stoking concerns of an imminent attack. This development has intensified fears of a broader conflict in the Middle East, driving investors towards the safe-haven asset. Global conflicts and political instability often increase gold demand as governments and individuals seek to protect their wealth.
Gold remains within a well-defined multi-month range with the precious metal testing, and briefly breaking, resistance before falling back. The short-term outlook remains mixed with the 50-day sma proving support while the 20-day sma acts as near-term resistance. The multi-month series of higher lows remains in place, while a break above $2,485/oz. is needed to keep a series of higher highs in place.
Retail trader data shows 57.69% of traders are net-long with the ratio of traders long to short at 1.36 to 1.The number of traders net-long is 7.05% higher than yesterday and 5.31% lower than last week, while the number of traders net-short is 9.89% lower than yesterday and 13.35% lower than 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 prices are inching upward, recovering about half of Monday's losses, as tensions escalate over potential Iranian retaliation against Israel. Following the death of Hamas leader Ismail Haniyeh last week, Iran has openly vowed retribution, stoking concerns of an imminent attack. This development has intensified fears of a broader conflict in the Middle East, driving investors towards the safe-haven asset. Global conflicts and political instability often increase gold demand as governments and individuals seek to protect their wealth.
Gold remains within a well-defined multi-month range with the precious metal testing, and briefly breaking, resistance before falling back. The short-term outlook remains mixed with the 50-day sma proving support while the 20-day sma acts as near-term resistance. The multi-month series of higher lows remains in place, while a break above $2,485/oz. is needed to keep a series of higher highs in place.
Retail trader data shows 57.69% of traders are net-long with the ratio of traders long to short at 1.36 to 1.The number of traders net-long is 7.05% higher than yesterday and 5.31% lower than last week, while the number of traders net-short is 9.89% lower than yesterday and 13.35% lower than 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.
Gold remains within a well-defined multi-month range with the precious metal testing, and briefly breaking, resistance before falling back. The short-term outlook remains mixed with the 50-day sma proving support while the 20-day sma acts as near-term resistance. The multi-month series of higher lows remains in place, while a break above $2,485/oz. is needed to keep a series of higher highs in place.
Retail trader data shows 57.69% of traders are net-long with the ratio of traders long to short at 1.36 to 1.The number of traders net-long is 7.05% higher than yesterday and 5.31% lower than last week, while the number of traders net-short is 9.89% lower than yesterday and 13.35% lower than 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.