Gold Price (XAU/USD) Analysis, Price, and Chart
- Gold remains supported despite the rise in US Treasury yields.
- US inflation and the FOMC policy decision are the main drivers next week.
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How to trade gold
For all market movement data releases and events, see DailyFX Economic Calendar
US Treasury yields are maintaining their gradual rise as the US government continues to sell massive amounts of government bonds across the curve. The sales announced yesterday include more than $200 billion in short-term notes, $72 billion in bonds, and $18 billion in reopened 30-year notes.
Data via Treasury Direct
The economic calendar is packed with high-profile US releases and events next week with the inflation report on Tuesday and the Federal Reserve’s interest rate decision on Wednesday. The press conference following the FOMC decision should be closely followed as well as the FOMC Quarterly Economic Outlook (dot chart). While the Fed is expected to leave interest rates unchanged, the press conference and outlook will give the market a much clearer picture of the Fed’s current thinking.
For all market movement data releases and events, see DailyFX Economic Calendar
$1,932 – $1,940 / oz. The area has proven to be a solid level of short-term support for gold, with the precious metal testing and failing to break out on a number of occasions over the past two weeks. The spot gold price also returned above $1,960 an ounce, and is currently trying to breach the 20-day simple moving average, which is a short-term indicator that affected the precious metal in the past month. Next week’s calendar will determine the short-term future of gold.
Daily Gold Price Chart – Jun 9, 2023
Chart via TradingView
|
change in |
Longs |
Shorts |
Hey |
| Daily | 1% | -14% | -5% |
| weekly | -2% | 5% | 0% |
Retail traders are consolidating their short positions
Retail trader data shows that 64.49% of traders are net long with the ratio of traders long to short at 1.82 to 1, while the number of net long traders is down 15.96% compared to yesterday and up 0.28% compared to last week. The number of short traders increased by 32.33% compared to yesterday And 0.76% lower than last week.
We usually take a view contrarian to crowd sentiment, and the fact that traders are holding on suggests that gold prices could continue lower. Positioning is less net buying than yesterday but more net buying than last week. A mixture of current feelings and recent changes gives us More mixed bias in gold trading.
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