FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
20,040,805Confirmed
734,247Deaths
12,911,199Recovered
Fetching Location Data…
Advertisement
Advertisement
David Becker

Gold prices moved higher and continue to trade near an 8-year high. The dollar moved lower on and continues to experience downward pressure which is helping to buoy the yellow metal. The 10-year US treasury yield was stable and continues to hover near 64-basis points. Fear that COVID continues to spread through the United States, is weighing on future growth prospects and deteriorating inflation, helping to buoy the yellow metal. Hedge funds added to both long and short positions in futures and options this past week according to the most recent commitment of trader’s report.

Trade gold with FXTM

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus

Min Deposit:$10

Visit Broker

90% of retail CFD accounts lose money

Technical Analysis

Gold prices pushed higher and is hovering near 8-year highs. Prices are now poised to test target resistance near the August 2011 highs at $1,921. Support is seen near the 10-day moving average at 1,790 and additional support is seen near the 50-day moving average at 1,740. Short term momentum has turned negative. The current reading on the fast stochastic is 80, down from 89 on and is just above the overbought trigger level of 80 which could foreshadow a correction. Medium-term momentum remains positive as the MACD (moving average convergence divergence) histogram prints in the black but the upward movement is decelerating which points to consolidation.

Advertisement

Hedge Funds Remain Long Gold

Hedge funds added to both long and short positions in futures and options according to the most recent commitment of trader’s report released for the date ending 7/7/20. According to the CFTC, hedge funds added 7K contracts to long position while adding 6K contracts to short-positions. Total open interest in the managed money category shows that hedge funds are long 221K contracts while short 39K contracts.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Trade With A Regulated Broker

  • Your capital is at risk