Last Friday, buying momentum lifted gold prices, with potential for a further move toward the 3400 level, provided bullish momentum continues.
This move followed a weaker-than-expected Non-Farm Payroll (NFP) report, an uptick in the unemployment rate, and no change in the Fed's interest rate, all of which pressured the U.S. Dollar Index (DXY) lower and supported gold’s rise.
Interestingly, while price advanced, institutional traders reduced their long exposure by nearly 30,000 contracts, indicating some caution or profit-taking at current levels.
I remain bullish in the short term due to macro tailwinds, but bearish in the medium to long term as institutional positioning softens and resistance zones approach.
This move followed a weaker-than-expected Non-Farm Payroll (NFP) report, an uptick in the unemployment rate, and no change in the Fed's interest rate, all of which pressured the U.S. Dollar Index (DXY) lower and supported gold’s rise.
Interestingly, while price advanced, institutional traders reduced their long exposure by nearly 30,000 contracts, indicating some caution or profit-taking at current levels.
I remain bullish in the short term due to macro tailwinds, but bearish in the medium to long term as institutional positioning softens and resistance zones approach.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.