Gold Price (XAU/USD), Charts and Analysis
- The previous support level will turn into a resistance level.
- House Speaker Nancy Pelosi visits Taiwan.
- Individual Traders Shrink Overall Long Positions
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U.S. House Speaker Nancy Pelosi is said to be visiting Taiwan today, sparking outrage and fears of reprisals from Beijing. Although he is said to have visited various countries, Taiwan is not included in the official list. A spokesperson for China’s foreign ministry responded to Pelosi’s visit by warning of “serious consequences” of the visit, ominously adding that China is “fully prepared for any eventuality.” As Pelosi visits Taiwan and professes that China will retaliate, if China retaliates, we risk off assets such as: Money Receive bids for strong shelters. Taiwan, officially the Republic of China, is an island of just over 23.5 million people off the east coast of China.
Gold has risen sharply since hitting a one-year low of $1,680/oz. July 21st. The rally made new highs and lows almost continuously, removing the 20-day simple moving average line in the process. The precious metal is now entering a zone that has turned from previous support to resistance on either side of $1,787/oz.
Retail trader gold data below shows how traders have adjusted their long positions over the past week, with net longs down about 15% and net shorts up about 30%.
Gold Daily Price Chart – Aug 02, 2022
Retail trader data show84.40% of traders are net long and the ratio of traders long to short is 5.41 to 1. Traders’ net long numbers are 0.11% higher than yesterday, Down 15.11% from last weekthe number of net short traders is 4.85% higher than yesterday, 29.88% higher than last week.
We usually take a contrarian view of crowd sentiment and the fact that traders are net long suggests that gold prices may continue to fall. Still, traders are net long less than they did yesterday and compared to last week. Despite the fact that traders remain net long, the gold price trend could soon reverse.
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Tensions rise in Taiwan as rising gold prices meet resistance
Source link Tensions rise in Taiwan as rising gold prices meet resistance