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Gold prices focus on consumer confidence data as technical positioning signal collisions

Gold, XAU / USD, Treasury Yields, CB Consumer Confidence, Technical Analysis-Issues:

  • Gold price Rally to conclude Monday’s trading session
  • The collapse of the Treasury creates a factor and looks to CB’s trust
  • It looks like the technical signal and the positioning signal are colliding

Gold prices on Monday aimed to rise cautiously as anti-Fiat yellow metal continued its short-term upward trend from early October.Direction U.S. dollar Treasury yields often have a significant impact on XAU /.U.S. dollar.. The greenback was relatively flat at the beginning of the week, so it was the performance of US Treasuries that pushed gold prices up.

The Treasury yields have fallen cautiously over the last decade, but the move has been less aggressive than seen at the front end. Yields on two-year bonds fell about 4% on Monday, dropping from last week’s closing price of about 0.46% to about 0.43%. This may reflect lower expectations of the hawkish Federal Reserve, following a sustained rise since late September.

Lower yields can make interest-free assets relatively attractive. During the Asia-Pacific trading session on Tuesday, Treasury yields rose cautiously, depreciating yellow metal. In the remaining 24 hours, Kim will face consumer confidence data from The Conference Board. The drop to 108.3 in October is expected from the previous 109.3. Worse results could weaken the hawkish Fed’s bets and open the door to the rise of yellow metal.

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Gold technical analysis

Gold continues to struggle around the 1808-1800 refraction zone on the 4-hour chart below. Recent rejections have encountered a negative RSI divergence, indicating that the upward momentum is diminishing. It may open a door that bends down, focusing on the floor of the ascending channel. Subsequent bounces from the floor could allow prices to resume their uptrend.

XAU / USD 4-hour chart

Chart created using TradingView

Gold Sentiment Analysis-Neutral

according to IG client emotions (IGCS), about 72% of retailers are Netlong XAU / USD. Short positioning is on the rise, increasing by 30.33% and 34.37% on a daily and weekly basis, respectively. IGCS usually acts as an indicator of contrarian. Yellow metal could fall as the majority of investors are net long. However, recent changes in positioning have created bullish and contrarian trading biases.

Gold prices focus on consumer confidence data as technical positioning signal collisions

IGCS chart used from * October 25NS report

–Daniel Dubrovsky, Strategist For DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX On twitter



Gold prices focus on consumer confidence data as technical positioning signal collisions

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