What’s reason behind gold’s poor performance?

May 30, 2017 at 10:09
1,787 Angesehen
43 Replies
Mitglied seit May 09, 2017   33 Posts
Jun 05, 2017 at 06:56
Net-bullish positions in gold rose for the second straight week, hitting the highest level in four weeks.

The non-commercial futures contracts of Comex gold futures gained 7,323 contracts over the week, totalling to a net position of 167,090 contracts in the data reported through May 30th.

Meanwhile, the commercial traders position totalled a net position of -183,219 contracts this week, registering a weekly decrease of -8,928 contracts from the total net of -174,291 contracts seen last.

Gold positions have risen by over +40,000 contracts in the last two weeks.
Mitglied seit Feb 03, 2017   29 Posts
Jun 07, 2017 at 06:33
Cuz investors wants to park their cash in a safe haven. Gold is one of them. But they rather do it with Yen.
Don't panic over drawdown, instead manage it !!
Mitglied seit Dec 06, 2016   33 Posts
Jun 08, 2017 at 06:40
Forex_Villa posted:
Cuz investors wants to park their cash in a safe haven. Gold is one of them. But they rather do it with Yen.

yes what you said was completely right, the yen was a safe haven in this current situation, it is because of their stable and steady economy considered as the second world's largest economy behind the US (see https://itrader-indices.com/stable-and-steady-prediction-for-chinese-economy-in-2017/)
Mitglied seit May 09, 2017   33 Posts
Jun 08, 2017 at 09:55
Gold prices were relatively overbought at the time, and with RSI on the hourly chart already having shown a case of divergence, traders would likely want to wait before pressing the bullish approach.

But the up-trend just kept moving until, eventually, price action encountered the prior April-high, at which point bears began to take over. This totals over $80 of gains for Gold prices from the ‘Comey low’, which printed just as news that former FBI Director James Comey was fired, around market close on May 9th. Perhaps more interesting than just the raw movement is the speed with which an aggressive down-trend turned into an aggressive up-trend with a minimum of congestion or gyration near the lows. This was a clean reversal, as if a light switch were flipped to turn the trend from bear to bull in the blink of an eye.

But as prices continued to run-higher yesterday, resistance began to show off of the April high around $1,295. Also in this area is a projected trend-line from the previous bullish move in mid-April; the projection of which runs into current resistance.
Mitglied seit May 26, 2017   11 Posts
Jun 08, 2017 at 09:56
For anyone trying to understand gold trends and I mean macro trends you need to understand it's relationship with real (no nominal) interest rates. There's the answer to whether you should sell or buy and I do assume you mean trade gold. If you have bullion or coins don't ever sell them. One day you'll regret it greatly.
The trend is your FRIEND
Mitglied seit May 26, 2017   11 Posts
Jun 09, 2017 at 08:47

The gold chart, because of manipulation is a very technical chart and that means you can trade it as such and pay little attention to fundamentals or news or politics. Traders in the know trade the weekly trends which will give you both short and long profit as much as 30% a week.
The trend is your FRIEND
Mitglied seit Feb 12, 2016   522 Posts
Jun 12, 2017 at 14:08
There are few days from the start of the June FOMC meeting. Keep in mind, the last two rate hikes on Dec. 14, 2016, and March 15, 2017, both led to gold rallies. :)
Mitglied seit Apr 17, 2017   6 Posts
Jun 15, 2017 at 10:13
If the US economy slows would that be positive or negative for gold?
Mitglied seit May 26, 2017   11 Posts
Jun 16, 2017 at 06:54
Consider where real rates are to answer that question. If The Fed keeps raising rates and the economy slows they will be pressured to drop them. If inflation has risen also then the real rates are negative which pushes investors in gold as it is non inflationary. BUT there is enormous pressure from The Fed to suppress the price as we have just see at 1290. We are now in a selling trend as a result which could go down to 1190.
The trend is your FRIEND
Mitglied seit May 09, 2017   33 Posts
Jun 23, 2017 at 11:33
Bloomberg carries a piece on gold-price outlook in the coming months, noting that the outlook for the yellow metal remains divided, with the bear trend descending from record high in 2011 still intact, while higher highs, higher lows signal recent rally may have legs.

Key Points:
Bearish factors:
No incentive to hold the precious metal because equities are climbing to records
Global economy is recovering
Federal Reserve is so wary of tight labor markets that it has pledged to increase u.s. interest rates further this year

Bullish factors:
Gold is an appealing hedge as long as Donald Trump's presidency remains mired in controversy and legislative gridlock
And as terrorist attacks and geopolitical tensions heighten risks for other assets

Got the live updates from https://www.mmfsolutions.sg
Mitglied seit May 26, 2017   11 Posts
Jun 25, 2017 at 07:45

The media will always speculate with a good case but as traders we know that the Fed continues to thwart the price at the channel line frustrating buyers and creating a ranging longterm pattern. IMHO we are grinding into a weekly roolover of the price on the ma13. Longer term the selling pressure will increase and take us down to 1200 again.
The trend is your FRIEND
Mitglied seit May 26, 2017   11 Posts
Jun 26, 2017 at 10:03
The massive spike down in the price we saw tonight proves that the Fed won't let it break the ber channel. Only a crash in the Dow or real negative interest rates will permit the price to break the line. I predict back to 1200 and maybe even below.
The trend is your FRIEND
Mitglied seit Dec 11, 2015   1487 Posts
Jun 26, 2017 at 12:51
What was the reason for that spike anyway? Did I miss some news? I was looking at the calendar and I saw no big events that would have such an effect.
Mitglied seit May 26, 2017   11 Posts
Jun 26, 2017 at 14:25

Pure manipulation. We were expecting and had sell trades waiting. It paid well. Big move. The Fed pulled the price away from the bear channel as they knew the durable goods figures were bad.
The trend is your FRIEND
Mitglied seit Sep 17, 2015   126 Posts
Jul 18, 2017 at 06:40
mlawson71 posted:
What was the reason for that spike anyway? Did I miss some news? I was looking at the calendar and I saw no big events that would have such an effect.
investors go buy Gold when nothing clear in Forex Pairs... it happens sometimes )
Mitglied seit Aug 17, 2021   94 Posts
Oct 30, 2021 at 13:12
There is an inverse relationship between Sensex and gold prices. When investors detect a bullish trend in the stock market, they want to increase their stock investments in order to benefit from rising stock prices in the future. As a result of this shift in desire, gold demand falls, decreasing gold prices.
Mitglied seit Sep 22, 2018   70 Posts
Nov 02, 2021 at 13:31
AmeliaChong posted:
Greece issue may have weighed over Treasury yields and AUD/JPY pair, but it hasn’t had any noticeable impact on the classic safe haven asset - Gold.

You can check it out here: https://uaefinancialmarket.blogspot.com/2017/05/gold-is-flat-lined.html

Thanks for the link
Mitglied seit Jul 23, 2020   869 Posts
Nov 05, 2021 at 17:09
Gold remains on the back foot, Market’s indecision ahead of the Fed’s verdict could be linked to the mixed headlines over US stimulus and inflation expectations.
Mitglied seit Mar 17, 2021   536 Posts
Nov 06, 2021 at 18:04
croisssan posted:
Basically, here a lot depends on the trader and his mood for work. This is really a very important factor.
Most traders don't have proper knowledge.
Mitglied seit Jan 13, 2021   52 Posts
Nov 08, 2021 at 16:24
TanEric posted:
Is Greece issue is the reason behind poor perfoemance of gold?
Just remember gold will always go up in the long run
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