CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

GOLD: Triangle forms as range-bound movement tests trend traders

Movement remains range-bound awaiting risk-related shocks.

The latest Gold performance:

Trend traders continue to await a breakout opportunity, as the price movement remains range-bound and a triangle forms on the daily chart, even if safe haven assets enjoyed a slight boost as equities took a small dip. In the absence of a risk-related shock, safe haven assets have been in slight retreat as investors slowly shift back to riskier assets, especially with US equities close to recent record highs despite disappointment in earnings.

Gold Technical analysis, overview, strategies, and levels

From a technical standpoint, nearly all its main indicators remain neutral, its price still below its main short-term moving averages, and a non-trending Average Directional Index (ADX).

Current Technical Overview Consolidation
Technical Overview Conformist Strategies Sell 1st Resistance After Reversal, Buy 1st Support After Reversal
Technical Overview Contrarian Strategies Buy 1st Resistance Upon Breakout From Below, Sell 1st Support Upon Breakout From Above
S/L for 2nd Resistance 1519.0
2nd Resistance 1513.0
S/L for 1st Resistance 1507.0
1st Resistance 1500.9
Relative Starting Point 1488.9
1st Support 1476.8
S/L for 1st Support 1470.8
2nd Support 1464.8
S/L for 2nd Support 1458.8

IG client and CoT sentiment for Gold

While we aren’t seeing early signs of a significant shift to range-trading, there are slight changes in retail sentiment registered even on small price changes, with the bias down 2% to a heavy long 71%.

Gold chart with retail and institutional sentiment

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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