How Future Tradings React on Gold’s Interrupted Upside?

WikiFX News (21 Aug)- Investors better pay attention to changes of future tradings as gold prices are still under the risk of selloff after its slump on Wednesday.

According to gold prices weekly chart, the RSI has broken below the overbought zone, which points to the strengthening downside momentum and highlights the risk for a deeper pullback while below 2033/35.

IG Client Sentiment Report shows traders still hold gold bullish with the long-short ratio stands at 3.63:1 (78.40% of traders are long). Long positions are 2.48% higher than yesterday and 11.62% higher than last week, while short positions are 4.76% lower than yesterday and 1.74% higher than last week.

As crowd sentiment is often viewed in a contrarian manner, the fact that traders are net-long suggests gold prices may continue to fall. Considering more traders are net-long than yesterday and last week, such downtrend is even more possible.

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(Gold prices weekly chart)