Gold bulls take a breather as US dollar outperforms
Gold’s technical overview remains bullish despite setbacks, technical indicators still flashing green
GOLD: Higher highs entice longs into entering though volatile retracement remains likeliest
The technicals continue to remain bullish for the precious metal, having powered higher on the back of rising geopolitical tensions increasing flows into safe haven products, and a greenback that was losing its luster on increased likelihoods of significant rate expectations. A dent in those expectations however, have given the US dollar some strength both yesterday and today morning as well, and forcing the precious metal into a retracement back down past today’s 1st Support level. US data will matter more this evening in terms of the reaction in equities and safe haven products. In terms of sentiment, retail bias has dropped slightly to a majority long 58%, with limited profit-taking more ideal in times of increased volatility.
SILVER: Failing to outperform on bullish days, disappointing on bearish ones
While gold’s price surged higher intraday yesterday to make fresh highs, silver’s gains were nearly non-existent, opting instead for a lower finish against the greenback after the latter strengthened. While the technical bias remains positive with more of its technical indicators lighting up green, the overview remains consolidatory and intraday movement limiting at best. Meanwhile, retail bias has dropped a notch to an extreme long 93%.
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