Market changes? Gold plummets, hedge fund positions suddenly chaIn the early morning of the Asian market, spot gold fell sharply in the short term, and the current gold price is around $3,295/ounce, which has fallen by $52 from the intraday high of $3,336.98/ounce hit at the beginning of the session.
Gold prices fell further from last week's record high as traders closed their positions due to signs that the "explosive rise" in gold prices may be too fierce and too fast.
Since breaking through $3,500/ounce last week, gold prices have fallen by more than 5%.
At the same time, the latest data from the Commodity Futures Trading Commission (CFTC) showed that hedge fund managers cut their net long positions in gold futures and options to the lowest level in 14 months.
Quaid believes that signs of easing trade tensions may have weakened gold's safe-haven appeal.
Quaid's analysis:
From the perspective of the two larger cycles of daily and weekly lines, gold may fall further. On the one hand, the daily line continues to close negative on the short-term moving average, and the rebound is not strong, forming a pattern of continuous negative and single positive. The previous two times were adjusted to the 30-day moving average. If this time is calculated in this way, the bottom position is about 3165-3170, which is both the golden section and the previous high top and bottom conversion position.
On the other hand, the weekly line formed a "K" line at a high level last week, which is generally a top signal, meaning that there is still a possibility of decline. And it deviates too far from the short-term moving average, and there is a need for further technical adjustments.
Comprehensive analysis:
This week, gold focuses on the upward resistance position of the 3370-3260 range. A strong breakthrough of 3370 will see the continuation of the bulls, and a break below 3260 will open up downward space.
