Gold Daily Technical Outlook

New data released on Friday by US regulator the CFTC - which also confirmed it wants to set position limits on gold derivative traders, alongside 'anti-speculation' caps on oil and grain dealing - showed hedge funds and other large speculative players cut both their bullish and bearish bets on the Gold Price last week. Overall, that left professional speculators' net long position in Gold Futures and options little changed, standing more than a third above its 5-year average at the equivalent of 532 tonnes.The SPDR listed in New York meantime shed 10 tonnes of Gold Bullion last week, taking the volume of gold used to back its ETF shares just below 1,110 tonnes.

Written by Oil N' Gold | Mon Jul 13 09 07:14 ET
Comex Gold (GC)

Gold continues to stay in tight range above 904.8 today so far and intraday outlook remains neutral for the moment. Nevertheless, any recovery should be limited below 949.0 resistance. Break of 904.8 will confirm fall from 992.1 has resumed and should target 100% projection of 992.1 to 913.2 from 949 at 870.1 next.

In the bigger picture, fall from 992.1 is the third leg of the consolidation from 1007.7, which is not completed yet. such decline will likely extend to of 865 support before completing the whole consolidation. Nevertheless, downside is expected to be contained by 801.5 cluster support (61.8% retracement of 681 to 1007.7 at 805.7) and bring resumption of rise from 681.

On the upside, above 949 resistance will suggests that fall from 992.1 has completed and turn outlook bullish for retesting this resistance. Break there will revive the case that rise from 865 is resumption of up trend rather than part of sideway consolidation. In such case, retest of 1007.7/1033.9 resistance should be seen next.