XAU/USD Flirts Breakout as Retail Traders Turn More Bearish
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<h2>Gold, Retail Trader Positioning, Technical Analysis – IGCS Update</h2>
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<li><span>Gold prices</span><span> have climbed for another day</span></li>
<li><span>Retail traders starting to turn more bearish</span></li>
<li><span>Will XAU/</span><span>USD</span><span> confirm trendline breakout?</span></li>
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<p>Gold prices have rallied for a couple of trading sessions and retail traders have responded by increasing their downside exposure. This can be seen by looking at IG Client Sentiment (IGCS), which often functions as a contrarian indicator. With that in mind, will an increasing shift in retail exposure offer a warm welcome for the yellow metal?</p>
<h3>Gold Sentiment Outlook – Bullish</h3>
<p>The IGCS gauge shows that about 70% of retail traders are net-long gold. Since the majority of them are biased to the upside, this still could spell trouble for gold down the road. That said, downside exposure has increased by 9.49% and 3.59% compared to yesterday and last week, respectively. With that in mind, recent changes in exposure hint that the price trend may soon reverse higher.</p>
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<span><br />
<span data-stream-type="sentiment" data-market- data-value="–" data-type="long-value-info"><br />
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<span>of clients are </span><span>net long.</span> </span><br />
<span><br />
<span data-stream-type="sentiment" data-market- data-value="–" data-type="short-value-info"><br />
</span><br />
<span>of clients are </span><span>net short.</span> </span>
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<table>
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<td>
Change in </td>
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Longs </td>
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Shorts </td>
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OI </td>
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<td>Daily</td>
<td>4%</td>
<td>9%</td>
<td>6%</td>
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<td>Weekly</td>
<td>-1%</td>
<td>4%</td>
<td>1%</td>
</tr>
</tbody>
</table>
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<p><img decoding="async" loading="lazy" src="https://a.c-dn.net/b/3P2rZY/image1.png" alt="Gold Client Positioning" data-image-original-width="1800" data-image-original-height="1200" width="1800" height="1200" class="dfx-lazyload" style="padding-bottom: calc(1200 / 1800 * 100%);" /></p>
<h3>XAU/USD Daily Chart</h3>
<p>On the daily chart, recent gains have pushed gold prices to flirt confirming a breakout above the falling trendline from May. Immediate resistance is the 1936.90 inflection point. A push above that exposes the 23.6% Fibonacci retracement level of 1971.63, opening the door to an increasingly bullish technical bias.</p>
<p>Otherwise, a false breakout places the focus back on the 38.2% point around 1903.46 before exposing the August swing low of 1884.37. Confirming a breakout under the latter opens the door to extending the downtrend since May.</p>
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Recommended by Daniel Dubrovsky
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<p><img decoding="async" loading="lazy" src="https://a.c-dn.net/b/2MJ0jT/image2.png" alt="image2.png" data-image-original-width="1407" data-image-original-height="744" width="1407" height="744" class="dfx-lazyload" style="padding-bottom: calc(744 / 1407 * 100%);" /></p>
<p><span>Chart Created in Trading View</span></p>
<p><span>— Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com</span></p>
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<br /><a href="https://www.dailyfx.com/analysis/gold-price-outlook-xau-usd-flirts-breakout-as-retail-traders-turn-more-bearish-20230918.html">Source link </a></p><p>The post <a href="https://forextraderhub.com/xau-usd-flirts-breakout-as-retail-traders-turn-more-bearish.html">XAU/USD Flirts Breakout as Retail Traders Turn More Bearish</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>
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