Tips for traders, 16 March 2021
In recent months, according to data gathered from the World Gold Council, demand for gold for investing has dropped substantially in most regions with the exception of Asia. There many people still believe that gold can be a very good investment for their future.
The decline in demand for gold came with a decline in long open interest as well for COMEX’s futures. There are fewer participants holding buying positions, indicating declining belief in the price of gold appreciating.
From a technical perspective, the current price is retesting its supply zone, which could be a boundary for the price to move further upward. However, it is very close to the support around $1,720, so shorter term trades while waiting for the FOMC‘s announcement on Wednesday evening in the US might make sense.