Gold Prices Hold 2019 Opening Range, RSI Responds To Bullish Formation

Image of IG client sentiment for gold

The IG Client Sentiment Report shows 69.5% of traders are now net-long gold compared 70.8% last week, with the ratio of traders long to short at 2.28 to 1. Moreover, the percentage of traders net-long is now its lowest since September 03 when gold traded near $1200.The number of traders net-long is 1.9% lower than yesterday and 4.2% lower from last week, while the number of traders net-short is 5.8% higher than yesterday and 16.1% higher from last week.

The range-bound price action appears to be prompting profit-taking behavior amid the drop in net-long interest, but the update also highlights a more dynamic shift in market sentiment as the retail crowd ramps its net-short exposure.

As a result, the change in the IG Client Sentiment index may continue to materialize alongside higher gold prices, with the topside targets still on the radar for the precious metal as the Relative Strength Index (RSI) appears to be responding to trendline support.

GOLD DAILY CHART

(Click on image to enlarge)

Image of gold daily chart

  • Topside targets remain on the radar for gold as both price and RSI preserve the bullish formations from late-2018, but the precious metal seems to be stuck in a near-term holding pattern as it consolidates above the $1279 (38.2% retracement) region.
  • Still waiting for a break/close above the $1298 (23.6% retracement) to $1302 (50% retracement) area to spur a more meaningful run at the June-high ($1309), with the next region of interest coming in around $1315 (23.6% retracement) followed by $1328 (50% expansion).
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Disclosure: Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment ...

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