Golden technical analysis
Gold (XAU /USD) has risen above the psychological level of $ 1,800. As Gold rises, both Gold and Silver has benefited from the recent weakness of the USD and low Treasury yields, which have continued to increase demand for alternative assets.
As gold prices recently broke through the 50% Fibonacci retracement level, which previously provided support at $ 1,818, at the 50% Fibonacci retracement level in 2021, the focus is now on the next basic psychological level, $ 1,900. If the non-agricultural payroll is published on Friday, August 6, 2021, gold traders may be ready for new breaks in both directions, depending on the results of the reports.
Meanwhile, gold prices continue to threaten a 38.2% retracement level of $ 1,834, while the RSI remains higher.
Gold (XAU / USD) daily schedule
The chart was compiled by Tammy da Costa using IG charts
Gold: At the time of writing, Retail data show that 81.94% of traders are net lengths and the ratio of long to short traders is 4.54: 1. The number of traders in net length is 0.25% higher than yesterday and 1.00% higher than last week, while the number of short traders is 1.74% higher than yesterday and 0.49% higher than last week.
We usually take the opposite view of crowd sentiment, and the fact that traders are net lengths suggests that gold prices may continue to fall.
Positioning is less network length than yesterday, but more than last week. The combination of the current mood and recent changes gives us additional confusion when trading gold.
– Written by Tammy Da Costa, analyst at DailyFX.com
Get in touch with Tammy and follow her on Twitter: Replying to @ Tams707