Advertisement
Advertisement
Gold Price Prediction – Prices Consolidate Following Friday’s Breakout
By:
Hedge funds remain long gold
Gold prices moved sideways edging lower on Monday, as the dollar continues to trading under pressure. The Bond markets in the United States were closed on Monday in observance of the Columbus Day holiday. Hedge funds remain long gold futures and options and barely changed their position according to the latest commitment of traders report released for the date ending October 6, 2020.
Trade gold with FXTM
Regulated By:FCA, FSCM, SCA, CMA
Headquarters:Mauritius
Foundation Year:2011
Min Deposit:$200
Online Forex/CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading Online Forex/CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. It is the responsibility of the Client to ascertain whether he/she is permitted to use the services of Exinity Capital East Africa Ltd based on the legal requirements in his/her country of residence.
Demo Account:Open Demo Account
Max Leverage:1:30 (FCA), 1:3000 (FSCM), 1:2000 (CMA)
Publicly Traded:No
Deposit Options:Wire Transfer, Credit Card, Skrill, Neteller, PerfectMoney, Local Transfer, FasaPay, , , , Debit Card,
Withdrawal Options:Wire Transfer, Credit Card, Skrill, Neteller, Debit Card, Local Transfer, FasaPay, , , PerfectMoney, ,
Products:Currencies, Commodities, Indices, Stocks, Crypto
Trading Platforms:MT4, MT5,
Trading Desk Type:No dealing desk
OS Compatability:Desktop platform (Windows), Desktop platform (Mac), Web platform
Mobile Trading Options:Android, iOS
Technical analysis
Gold prices consolidated on Monday after breaking out on Friday as the dollar tumbled. Prices held the break out level near trend line resistance which is now short-term support near 1,912. Resistance is seen near the 50-day moving average at 1,938. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line. The MACD histogram also generated a crossover buy signal rising above the zero-index line. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal in the middle of the neutral range.
Hedge Funds Remain Long
Hedge funds barely changed their position in futures and options according to the latest Commitment of Traders Report released for the date ending October 6, 2020. According to the CFTC, managed money slightly reduced short position while slightly increasing long position. Open interest that is long gold futures and options outnumbers managed money that is short futues and options by a ratio of 4 to 1.
About the Author
David Beckerauthor
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.
Advertisement