Commodity analysts note that the gold price has tested the critical resistance point four times since mid-July and failed to make a breakthrough. According to market analyst Neil Christensen, the gold market is grappling with investor apathy as Hedge Funds reduce bullish bets.
Ole Hansen: Dollar will be main short-term focus for gold traders
Ole Hansen, head of commodities strategy at Saxo Bank, said in a recent interview that while investors continue to buy gold on dips below $1,800, it’s not a major push for investors.
On what will trigger a new move to gold, Ole Hansen said he watches the US dollar for any signs of weakness. The head of commodity strategy noted in a separate report:
We believe the dollar will be the main short-term focus for gold traders, unless 10-year nominal returns break above key resistance 1.38%, potentially causing a negative reaction.
TDS commodity analyst: Technical data expects less capital to flow into gold investment
cryptocoin.com As you may know from its news, the CFTC’s disaggregated Trader Commitments report for the week ended Aug. 24 shows that money managers reduced their speculative gross long positions in Comex gold futures to 1259,044 with 7,511 contracts. At the same time, open interest increased by 6,571 contracts to 61,449. Gold’s net position is now at 67,595 contracts, down 17% from the previous week.
On the last day of the survey period, gold prices saw significant selling pressure and fell below $1,800 an ounce. TD Securities commodity analyst shared the following assessment:
Despite a general trend of bearish rates, a slightly weaker USD, and prices strengthening from the previous week, money managers have aggressively chosen to cut their long gold exposure and grow shorts. Technical data appears to expect higher real rates and less capital to flow into the yellow metal as the Fed prepares to reduce its aggressive asset-buying program.
“The silver market is slightly better than gold”
According to analyst Neil Christensen, the silver market is slightly better off than gold as Hedge Funds covers bearish bets, but they are still reluctant to place a substantial bullish bet. The distributed report shows that money-administered speculative gross long positions in Comex silver futures rose 398 contracts to 49,406. At the same time, short positions fell by 5,105 contracts to 31,630.
Silver’s net position stands at 17,776 contracts, up 44% from the previous week. During the survey period, silver prices hit a one-month high. However, analyst Neil Christensen notes that since then, prices have been unable to hold back these gains, staying well below $24 an ounce. While silver is struggling to attract bullish momentum, many analysts feel it has more potential than gold as demand for green energy rises, especially as industrial demand rises. Last week, the US Department of Energy announced that the US could get 37% of its power from solar energy by 2035. According to Neil Christensen, solar power could represent more than 40% of the market by 2050. Currently, only 3% of the electricity produced in the US comes from solar energy. Silver is a critical component in photovoltaic solar panels.
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