Gold has entered a consolidation phase after surging from 2970 to 3245 last week. Ongoing headlines about tariffs continue to fuel global demand, with strong interest seen in China and U.S. However, there are early signs that gold prices may be approaching a short-term supply-demand equilibrium.
COMEX inventory data recently showed that, for the first time in this rally (since December), physical demand has not increased over the past few days. While demand remains strong overall, this could be an early signal of slowing momentum.
The latest COT report indicates that total net managed money positions have been slowly declining since early February, with the pace of reduction picking up recently. This suggests that smart money is locking in some profits while the market remains strong. Still, net positioning remains elevated.
In the short term, this might not trigger a major reversal, but gold bulls should stay cautious and consider tightening stop-loss levels to manage risk.
A possible flag pattern appears to be forming, though the structure is not yet fully developed. The key resistance to watch is 3245. Unless this level is broken, gold could be forming a horizontal or slightly bearish flag beneath it.
Short-term support levels to monitor are 3200, 3175, and 3130 for now. These will be updated as the price action evolves.
COMEX inventory data recently showed that, for the first time in this rally (since December), physical demand has not increased over the past few days. While demand remains strong overall, this could be an early signal of slowing momentum.
The latest COT report indicates that total net managed money positions have been slowly declining since early February, with the pace of reduction picking up recently. This suggests that smart money is locking in some profits while the market remains strong. Still, net positioning remains elevated.
In the short term, this might not trigger a major reversal, but gold bulls should stay cautious and consider tightening stop-loss levels to manage risk.
A possible flag pattern appears to be forming, though the structure is not yet fully developed. The key resistance to watch is 3245. Unless this level is broken, gold could be forming a horizontal or slightly bearish flag beneath it.
Short-term support levels to monitor are 3200, 3175, and 3130 for now. These will be updated as the price action evolves.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.