Gold prices rose slightly on Monday and the US dollar continued to trade strongly and rebounded from recent lows. The dollar started the week at a 20-year high against its peers as investors sought security amid fears about global growth and continued to make rival safe-haven gold less attractive to buyers in other currencies. Meanwhile, various experts conveyed their expectations for gold. Here is the gold analysis of CME Group and TD Securities…
What does CME Group’s gold data show?
According to CME Group’s advanced data, traders increased their open interest by just 242 contracts on Friday. Instead, volume fell sharply to around 127.6k contracts, reversing the previous daily increase. According to experts, the first support below comes in at the $1,800 levels. As reported by Cryptokoin.com , gold prices fell on Friday and tested $1,800 an ounce.
The decline was behind a small increase in open interest, which, according to experts, leaves the door open for additional losses in the very near term. Meanwhile, a break of $1,800 is thought to indicate a likely test of 2022 lows of $1,780 (January 28). At the time of writing, an ounce of gold is changing hands at $1,794.
TD Securities: There may be a significant liquidation of gold
The gold price has fallen in recent days. Economists at TD Securities stress that a major liquidation event could occur right now. In general, it is noted that the sensitivity is weak for precious metals. According to TD Securities analysts, this could cause additional pain for weak and high positions. Analysts’ statements are as follows:
Sentiment is weak in precious metals and high positioning analytics still discuss potential additional pain for gold fans. CTA trend followers have also joined the liquidation party, and with prices currently below the uptrend that defines the bull market, a major liquidation event may be looming right now.
