Gold Price Forecast: Bears Gain Momentum as Hedge Funds Lose Interest
Gold prices are consolidating above key support as rising yields and improving sentiment cap gains. The $2000/oz level continues to be a stumbling block for gold, despite the weaker US dollar. The safe haven appeal of gold may be waning as optimism grows that a wider regional conflict in the Middle East may be averted. Gold is likely to remain supported with a weaker US dollar, but a sustained break above $2000 may require continued weakness in US data. The immediate downside risk for gold lies in improving sentiment and risk appetite, which could push gold toward a deeper retracement. Silver is showing a similar price action to gold, with a double top pattern and a key resistance area around $23.18. Retail traders are overwhelmingly long on silver, suggesting a potential fall in the days ahead.