Gold - significant divergence

The price of gold has reached the highest levels since 2011. However, the large speculators seem to be trimming their net long positions creating a significant divergence. Divergence in which the price has been reaching new highs while the net long positions have been falling.

This may suggest that the market important market participants do not believe in such a strong upward trend. The nearest resistance which could be tested is set by the line drawn through the tops. The nearest potential support may be located at 1691 USD.

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Daniel Kostecki, Chief Analyst Conotoxia Ltd.

Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.

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