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Gold Price (XAU/USD), Chart, and Analysis
- Gold is approaching multi-week support.
- No new drivers of gold’s moves are seen.
Gold has an interesting move this morning as the precious metal prepares to test near-term support levels. The precious metals fell on Monday after weaker-than-expected U.S. CB consumer confidence data, with little new news today to deter or drive the next move.
Yields in the U.S. Treasury market were slightly lower — usually the case for gold — with the benchmark 10-year Treasury note yielding 3.14%, compared with 3.24% on Monday. U.S. Treasury yields will continue to drive gold higher, with Federal Reserve Chairman Jerome Powell joining ECB President Christine Lagarde, Bank of England Governor Andrew Bailey and the President of the Bank for International Settlements in the backdrop Panel discussion at the ECB Forum later today. Managing Director Augustine Carstens. Any further clarity from the Fed chair could give gold a fresh boost.
From the daily chart, gold is still biased to the downside. A short-term series of lower highs persisted, while an almost complete series of lower lows sent prices lower. The precious metal remains below all three simple moving averages, while a 50-/200-day moving average crossover – a “death cross” – adds to the bleak outlook on the chart. The first level of support is at $1,805 an ounce. before $1,786/oz. enter the game.
Gold Daily Price Chart – June 29, 2022
Retail data shows that 85.76% of traders are net long, with a long-to-short ratio of 6.02 to 1. Net longs increased by 1.11% from yesterday and 11.70% from last week, while the number of net shorts increased by 2.88% from yesterday and decreased by 17 or 54% from last week.
We usually view crowd sentiment as a contrarian, and the fact that traders are net long suggests that gold prices may fall further. The net long position is less than yesterday, but more than last week. The combination of current sentiment and recent changes gives us another mixed bias towards gold trading.
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