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Gold breaks downtrend and posts best week since February
Gold futures gained nearly 7% for the week, with Wednesday up about 4%, and the article flags key technical levels at $4,000 support and a roughly $4,500 200-day moving average overhead.
Gold futures have posted their best week since February, rising nearly 7% as price action reclaimed the 50-day moving average and broke a downtrend that had been in place since March, according to Yahoo Finance.
The metal surged about 4% on Wednesday, its biggest one-day jump since February, carrying gold futures to a seven-week high. The piece also points to a shift in positioning, saying the ETF crowd largely left earlier, then first buyers began returning.
On the flow side, the rolling 125-day total for precious-metals ETF flows peaked near $40 billion in February before falling to roughly negative $20 billion by Monday, a reversal of more than $55 billion and the lowest reading in the data back to 2015, according to Baird Strategas. Chinese gold ETFs drew inflows for 14 straight sessions and accumulated about $1.2 billion during that streak, while central banks remain a steady demand source, with the World Gold Council survey showing 89% of reserve managers expect official holdings to rise over the next year.
The outlook described in the article notes that some commodity trading advisers may still be positioned short, and Goldman Sachs estimates they are about $9 billion short gold, which could swing to more than $10 billion long under its strongest upside scenario over the next month. It also cautions that Treasuries are a key obstacle for a non-yielding asset, and sets an immediate technical test for gold to hold above $4,000, with the 200-day moving average near $4,500 as the next upside reference point.
Latest closeGold $4,292.00 ▲1.1%