Gold Price News and Forecast: XAU/USD – ETF investors are still selling
|Gold technical analysis: Range bound; foundation floor under pressure
Gold recently has been tiptoeing around the base of a more than two-month sideways market, after plunging below the Ichimoku cloud and the 50- and 100-day simple moving averages (SMAs). The slipping 50-day SMA and the unclear bearing of the horizontal Ichimoku lines, are promoting consolidation in the yellow metal.
The short-term oscillators reflect conflicting signals in directional momentum. The MACD, in the negative region, is holding below its red trigger line, while the stochastic %K line is pushing over its %D barrier, promoting strength in the commodity. The RSI maintains a hovering tone slightly underneath the 50 threshold. Nonetheless, the upward sloping 100- and 200-day SMAs are endorsing positive sentiment. Read more...
Gold ETF investors are still selling
The holdings in gold backed ETF’s fell more than a million ounces in November. This means that gold backed ETF’s are on course for the first monthly decrease this year. Gold prices have been pressured since November 09 and the good news of Pfizer’s/BioNtech’s vaccine news. The sudden spike higher in US 10 Y bond yields sent the precious metal falling and the USD pushing higher. This provides a natural drag on gold prices.
However, since the initial reaction in the US10 year yields and the USD we have seen the USD drift lower again which is more supportive for gold. This has meant that gold has mainly stayed within a tight range above $1850. Any continued retreat from ETF investors does continue to make the case for near term downside. Read more...
Gold's price continues to shine, albeit in a range
The price of the precious metal has been ostensibly range-trading since our last follow-up of its price action. The contributing factors to the somewhat muted price action are many, but few are worth pointing out. Firstly and most significantly, gold's massive bullish run was distorted after BioNTech and Pfizer flaunted an over 95 per cent efficiency of their Covid-19 vaccine in preventing symptomatic infections in clinical trials of thousands of volunteers, which caused considerable investors' enthusiasm.
Many market participants anticipate the vaccine to be a game-changer in the fight against the pandemic by allowing the global economic activity to reach pre-pandemic levels when there is a worldwide immunity. We have already laid out all of the potential reasons why this may not be the case so soon, but at any rate, the general market excitement has negated the global demand for safe-havens. Read more...
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