Gold is attempting to push higher today, but the move lacks conviction. The recent trading range of $170/oz. ($2,280/oz. - $2,450/oz.) remains intact, and resistance is unlikely to be challenged in the near term. If support is breached, we could see a drop to $2,200/oz., with $2,193/oz. as the next target.

Retail trader data indicates that 69.35% of traders are net-long, with a long-to-short ratio of 2.26 to 1. The number of net-long traders is 4.98% higher than yesterday and 15.34% higher than last week, while the number of net-short traders is 3.94% higher than yesterday and 17.95% lower than last week.

We typically adopt a contrarian view to crowd sentiment, and the fact that traders are net-long suggests that gold prices may continue to fall. With traders more net-long than both yesterday and last week, the combination of current sentiment and recent changes gives us a stronger bearish contrarian bias on gold prices.

Gold Prices Struggle to Gain Momentum

Jun 11 2024

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