Gold price is struggling to catch up momentum. Analysts note that speculative interest has fallen. So what will the yellow metal do to prove its strength? Which levels are starting to come to the fore. Let’s look at the details.
Speculative interest for gold price
Interesting results have emerged in the latest trading data from the Commodity Futures Trading Commission. Accordingly, investors have put aside their bullish bets. Now, bearish expectations come to the fore. It’s not surprising, therefore, that speculative interest has dropped to a three-month low.
The gold market currently has a net long position of 74,643 contracts. Accordingly, it fell to its lowest level since March 14. At the same time, the precious metal saw the biggest drop in gross bullish positions since the beginning of February. During the survey period, gold prices found support around $1,950 per ounce. It also traded in a tight range with resistance near $1,980.
What are analysts saying?
Last week, the Federal Reserve did not change the interest rate. However, the hawk continued its trend. It signaled that it could potentially see two more rate hikes this year. This hawkish stance caused gold prices to fall to the lowest level in the last three months. Gold price tested the $1,930 support. However, the gold price recovered afterwards. It bounced back above the $1,950 level.
Ole Hansen, head of commodity strategy at Saxo Bank, said there are strong offers for the gold price. However, he pointed out that there is no trigger for a larger rally towards $2,000. According to him, the $1,985 level is an important level. Commodity analysts at TD Securities, on the other hand, state that the market is skeptical of the FED’s moves. Accordingly, there is a prevailing view that the central bank’s next move is more likely to lower interest rates.
How do hedge funds behave?
Investors are reluctant to take a bullish position under it. But hedge funds are starting to test the waters in the silver market for the second week in a row. Currency-administered speculative gross longs on Comex silver futures rose 1,442 contracts to 38,968. At the same time, shorts fell by 1,560 contracts to 25,971. On the other hand, India-based consulting firm Fortune Business Insights has published a report. Accordingly, the global precious metals market will reach $403.1 billion by 2028. Gold will lead the industry. This figure is higher than $275 billion in 2021.
cryptocoin.com When we look at it as a whole, IMARC Group makes an evaluation. “Increasing investments in precious metals, increasing use of precious metals in various industrial applications, and increasing adoption of precious metals in coin minting are some of the key factors driving the market,” he says. Research Reports World predicts that the global precious metals market will reach $316.6 billion in 2030, an increase of 5.32%.
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