The demand for safe haven assets have seen markets such as treasuries, yen and gold rise. Speculation that the Fed may drag its heels with lifting rates have also pushed the gold price to its highest since October.
Where Are The Sellers?
Some commentators still expect gold to fall this year however. Barclay’s expects gold to fall to $1,130 this year.
Where could the bears consider positioning themselves for selling this instrument?
The current price looks interesting given the recent demand at this level. The next level there may be some short interest at is around 1275 – the previously well defended lows between April and May of last year and the hook price where demand flipped to supply at the start of September may might get a bit of attention if price makes it up this far.