Overall Sentiment
- Gold made it all the way to $1,300.80 per oz but gave up most of the gains made
- Such rejection does not look technically good
Speculative funds positioning
- Fresh buying has helped propel the net long fund position higher and this bodes well for its price action
- Previously overstretched bearish bets continue to unwind
Bullish perspective
- So far, the pullback has been mild and dip-buying remain strong
Bearish perspective
- Technically vulnerable to selling pressure
Conclusion
Remained quite resilient but looked rather toppish in the short-term.
XAU/USD
Overall Sentiment
- Haven demand is still present but may be diminishing
Speculative funds positioning
- The complex remained fuelled by net speculative funds reducing their previously overstretched bearish bets – there was little fresh buying
Bullish perspective
- Its price action still trades within an uptrend from July low flash crash
- Global market watch as the Trump administration crumbles
Bearish perspective
A gravestone doji candle makes it hard to be too bullish and any follow up selling could prove fatal
Conclusion
Perhaps the dead cat bounce may have already run its course and the lack of fresh buying from funds are likely to see silver to test lower prices first.
XAG/USD
Market moving events this week
- Market participants turned to Jackson Hole for more clues
- Domestic turmoil as the Trump administration is like a house of cards
- US and South Korea military drill likely to draw market attention
- President of ECB, Draghi set to speak this Friday
SPX500
US Dollar Index
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