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Gold (XAU/USD) Analysis and Chart

  • Gold continues its technical correction.
  • Trading activity will pick up later in the week.

Most Read: Gold Picking Up a Small Bid as Oversold Conditions Begin to Clear

US equity and bond markets are closed for the day – US Presidents’ Day holiday – and this will weigh on market activity across a range of asset classes. Activity over the rest of the week should pick up with FOMC minutes, the release of the February PMIs, and chip-giant Nvidia’s earnings all worthy of attention. In addition, a handful of Fed speakers will give their latest thoughts on the economy, and maybe a steer on the future path of US interest rates.

For all market-moving economic data and events, see the DailyFX Economic Calendar.

The precious metal is continuing last week’s move despite hotter-than-expected US CPI and PPI data. Market rate-cut expectations continue to be pared back with the first cut now seen at the June meeting with a total of 90 basis points of cuts priced in for this year. In late December, the market forecast the first cut at the March meeting and expected a total of 175 basis points of cuts.


Markets Week Ahead: US Indices, Gold Recover Losses After US Inflation Fears

We noted last week that gold was heavily oversold using the CCI indicator – see the story at the top of this article – and this weakness is currently being reversed. A move higher will find initial resistance from the 20-dsma at $2,023/oz. and ta prior level of horizontal resistance, and the 50-dsma around $2,033/oz. Initial support at $2,000/oz. ahead of $1,987/oz.

Recommended by Nick Cawley

How to Trade Gold

Gold Daily Price Chart

Retail trader data shows 65.66% of traders are net-long with the ratio of traders long to short at 1.91 to 1. The number of traders net-long is 0.33% higher than yesterday and 3.79% lower than last week, while the number of traders net-short is unchanged than yesterday and 3.01% lower from last week.

of clients are net long.

of clients are net short.

Change in Longs Shorts OI
Daily 2% 15% 7%
Weekly -9% 9% -3%

What is your view on Gold – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.


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