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

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.

Gold 1

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.


Source: Gain Capital, TradingView

More from Gold

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.