accelerated their withdrawal positioning from Gold

On the one hand, the leading U.S. indices are reaching new all-time highs. Finally, Gold extends its losses, which ascends to 5.74% from the yearly high at $1,557.03 per ounce, reached on September 04.

Both the stock market and Gold are not too much affected by the news of the impeachment inquiry faced by President Donald Trump. Similarly, institutional traders are quite unconcerned by the populist discourse of Senator Warren, who is running for the presidential race of the United States in 2020.

However, the next puzzle is wether Gold is facing a reversal of the dominant bullish trend, or this movement corresponds to a taking profit activity?

Technical Overview

As commented on a previous analysis, Gold continues developing a corrective sequence that could correspond to a wave (4) of Intermediate degree labeled in black. The daily chart exposes the corrective sequence that could be incomplete.

XAUUSD 1 Daily

The next chart represents the golden metal in its 8-hour timeframe. Gold looks unfolding a flat pattern incomplete. 

XAUUSD 8 Hours

Considering that Gold made an accelerated rally, which drove it until the yearly high at $1,557.03, it is likely that the precious metal would create a triangular structure.

The lecture provided from the latest CFTC report revealed that institutional traders increased their short positioning by 9.04 (WoW). In the same report, we can see an increase of 2.66% (WoW) on the long-side. With this increment level, speculative traders keep 84.18% of long positions. 

Institutional positioning

In terms of net positions, the institutional positioning increased to 279,828 contracts last week from 276,565 positions reported in the previous week. This positioning level is slightly lower than the 13-weeks average that reached the 281,945 contracts.

Institutional net positions

In consequence, the movements observed on Gold's price structure, driven by institutional activity, could represent a taking profit process.
 

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