Gold

A stronger USD, prompted by the Trump probe, has seen metals under pressure with gold shedding over -1.8% by the close. Whilst prices have remained supported above 1,480 the potential for near-term weakness seems apparent, given yesterday’s 2-bar reversal. Eagle-eyed candlestick traders could note that yesterday’s bearish bar doesn’t quite pass as a bearish engulfing or outside day. Yet...

Weekly COT Report: Dollar Bears Throw In The Towel As of Tuesday 17th September: Traders increased net-long exposure to the USD by $2.2 billion, taking bullish exposure to a 3-month high of $15.4 billion Bullish exposure to the USD index (DXY) was at a 29-month high Traders were the least bearish on AUD in 6-months Net-short […]

The zone around $1480 remains key as it could be the difference between a bearish reversal or bullish continuation. Part of the reason gold has rallied so well this year is due to the markets expectation that the Fed are now on an easing cycle. So, it could be argued that gold is holding up […]

Weekly COT Report: Gold Bugs Reduce Long Exposure At Fastest Rate In 4 Months As of Tuesday 10th September: Traders trimmed bullish exposure to USD by -$0.54 billion, placing them at +$12.6 billion net-long (+$15.3 billion against G10 currencies) Traders are their most bullish in the USD index (DXY) since February The British pound saw the […]

China plans to release a new digital currency which would bear some similarities to Facebook’s Libra coin. It would be usable across several platforms like WeChat and Alipay. In a recent interview with the Shanghai Security News on the 6th of September, the deputy director of the People’s Bank of China, Mu Changchun, stated the […]

Weekly COT Report: Bullish Exposure Hits A 5-Week High As of Tuesday 3rd September: Traders increased net-long exposure to USD by +$2.6 billion, which make them the most bullish on USD in 5 weeks at $13.1 billion (or $16.2 billion against G10 currencies) Traders of the US dollar index (DXY) were their most bullish in 6-months […]

The gold/silver ratio has rolled over once more. Whilst we can see it headed for the mid-70’s, a few technical indications point towards a pause first.   In percentage terms, we had suggested it could reach the mid 70’s if we’re to see a similar retracement to the one seen in 2016, and momentum during this decline […]

Weekly COT Report: Bullish Exposure on USD Continues To Dwindle As of Tuesday 27th August: Traders were net-long USD by $10.6 billion, down -$0.34 billion from the prior week to make a fresh 14-month low. Against G10 currencies, traders are net long by $13.68 billion, down -$0.82 from the prior week. Traders increased net-short exposure on […]

Gold Miners Could Shine In The Current Trading Environment We’re keeping a close eye on the ratio between gold miners ETF (GDX) against gold (XAU). We can see on the weekly chart that gold miners are trying to outperform the underlying metal, after hitting a major low in late 2016. Whilst the ratio corrected between […]

Price action on the gold/silver ratio suggests a correction could be underway, to Silver’s advantage. It goes without saying that gold has had a stellar couple of months and, given the backdrop of global negative yields and the potential for a Fed easing cycle (even though they currently deny this), we expect gold’s trend to […]