Gold: Consolidation Remains Despite Total Gold Held By ETFs Near the Record Level

Technical analysis of Forex market

Total gold held by ETFs rose 34% this year to 110.90 million ounces as of October 1, approaching the record high level, according to Bloomberg’s data. Besides, the net long position of gold futures was down 1.6% on week to 128,953 contracts as of September 29, according to the Commodity Futures Trading Commission.

From a technical point of view, spot gold posted a rebound from $1,848 after breaking a symmetric triangle on a daily chart. Currently, gold prices are trading below the declining 20-day moving average. The relative strength index is also below its neutrality level at 50, suggesting the lack of upward momentum.

Bearish readers could set the resistance level at $1,935, while support levels would be located at $1,848 and $1,815 respectively.

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