Gold weekly outlook
Overall Sentiment
- The precious metals complex look stunned after another positive economic data out of the US
- Bullish conviction will be put to the test this week
Speculative funds positioning
- Latest CFTC report showed strong buying interest prior to US NFP data
- Gross shorts reduced their bearish exposure while longs are now rebuilding
Bullish perspective
- Strong buying interest from net speculative funds have helped justify the strong rebound in gold
Bearish perspective
- Another technical rejection off the multi-month downtrend line
Conclusion
The bullish rebound since the July low may have run its course and attracted profit taking activity
XAU/USD
Silver weekly outlook
Overall Sentiment
- The metal is currently consolidating from recent gains and key technical support may soon get tested
Speculative funds positioning
- Shorts were reducing their relatively overstretched bearish exposure but buyers are still rather timid
Bullish perspective
- The white metal still looks relatively cheap at just $16.35 per oz compared to gold
Bearish perspective
- The white metal still trades within the downward channel and as such, bears are still in control for now
Conclusion
Rejection from the 20 WMA suggest that selling interest still dominate the complex
XAG/USD
Market Moving Events This Week
- Market participants are digesting the positive US NFP data
- We mentioned previously that the dollar may have been oversold and its reversal is underway
- There were further talks among several key central banks that are contemplating to reduce their balance sheets
- Any risk off events from US politics or geo-political tensions from Korean peninsula could sent haven demand high again
SPX500
US dollar index
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